Compal Acquires 100% Stake in Hwangbao Tech at $18.5 Per Share

Compal Electronics (2324) will acquire 100% of its network equipment subsidiary Hwangbao Tech (6674) for a cash price of $18.5 per share. Compal and Hwangbao Tech announced on the 18th that their respective boards have approved the stock exchange plan. The acquisition price is 18.21% higher than the average closing price of the previous trading day before Hwangbao Tech's board resolution. Currently, Compal directly holds a 42.6% stake in Hwangbao Tech. Hwangbao Tech plans to discuss the stock exchange plan and related matters at an extraordinary shareholders' meeting on November 9. The settlement date for the share exchange has been tentatively set for December 31. Upon completion of the transaction, Hwangbao Tech will become a 100% subsidiary of Compal, with delisting from the stock market and suspension of public offerings expected.