BenQ Corp announced today that it plans to spin off its brand name business, BenQ, and change its corporate identity.
The move comes seven months after BenQ announced it would stop investing in German handset subsidiary BenQ Mobile.
Since then, BenQ Mobile has filed for bankruptcy and laid off thousands of employees in Germany, some of whom have been shown on TV picketing against the Taiwanese parent and the former owner of the mobile phone unit, Siemens AG. BenQ has said it lost over $1 billion in the attempt to turn BenQ Mobile into a profitable business.
An official English translation of BenQ's new name has not yet been decided, but it is being called Jia Da Corporation until one is found. Jia Da will focus exclusively on contract manufacturing, and will control 100 percent of the spin-off. The name BenQ Corp will go to the spun-off unit, which will continue to focus on brand name products such as mobile phones, digital projectors, computer monitors and LCD (liquid crystal display) TVs.
The reason why BenQ Corp opted to spin off the branded business is that the manufacturing business is larger, a company representative said. The branded business accounts for around 30 percent to 40 percent of revenue. It made sense for the larger of the two to become the controlling entity, and keep the name BenQ with the branded business, she added.
BenQ shareholders will have to approve the spin-off plan, which will move forward on 1 September 2007, if the proposal wins approval.