Lite-On IT, the largest maker of optical disc drives in Taiwan, is expected to benefit from Lite-On Technology acquiring a 10% stake in AOpen from Wistron, AOpen's parent company, according to Taiwanese stock market analysts. Lite-On Technology, the parent company of Lite-On IT, purchased 28 million AOpen, shares from Wistron at an average price of NT$13.847 per share, the analysts indicated.

The deal will in effect form a strategic alliance between Lite-On Technology and Wistron, Taiwan's third largest maker of notebook PCs, with Lite-On Technology supplying notebook PC components and devices, including slim-type ODDs from by Lite-On IT, the analysts pointed out.

In addition, with AOpen suffering continuing losses from its ODD manufacturing business, the company is expected to discontinue ODD production and instead source its products from Lite-On IT, the analysts predicted.

However, AOpen stated no decision has been made about its ODD manufacturing business, though the company added that it will continue to market optical drives.

Through the acquisition, Lite-On Technology becomes the second largest shareholder of AOpen, with Wistron's stake being 24%. AOpen posted net losses per share of NT$6.11 for 2004 and NT$2.40 for the first half of this year.

Wistron group companies, including Wistron subsidiaries and affiliates provide various products and services in the Communications, Component & Solutions and Software industries/fields.

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