MediaTek announces short-form merger with Ralink
By Ted Chen, The China post
February 18, 2014, 12:19 am TWN
TAIPEI, Taiwan -- MediaTek (MTK, 聯發科) yesterday announced that its board of directors has approved an initiative to acquire Ralink (雷凌科技) via a short-form merger.
Also referred to as a parent-subsidiary merger, the short-form merger may be utilized by a parent company to acquire its subsidiary. The process does not require approval of the shareholders of the subsidiary.
Following completion of the process, MediaTek would be the parent company surviving the merger, with Ralink ceasing to exist following April 1 this year.
MediaTek stated that the move is designed to simplified the company's internal organizational structure, and that the interests of its shareholders would not be affected. No tangible changes were made in the allocations of the company's assets, shares and dividend payout policies, said MediaTek.
Ralink was a wireless local area network (WLAN) chipset design company founded in 2001, and became a wholly owned subsidiary of MediaTek in 2011. The company's WLAN solutions spanned across various market niches including motherboards, laptop and desktop computers, and later expanded to gaming consoles, digital cameras, TVs and Blu-ray DVD players. The company once commanded a 10 to 12 percent global market share in WLAN solutions, and ranked among international suppliers including Broadcom, Intel, Atheros, and Marvell. The company's major clients included Dlink, Linksys, Buffalo, and Asus.