Unizyx Holding Corporation (hereinafter referred to as “Unizyx”) owned 100% shares of Zyxel Communications Corporation (hereinafter referred to as “Zyxel”) and the subsidiary Zyxel Communications A/S (hereinafter referred to as “ZyAS”). Zyxel and ZyAS would like to split the channel business to Zyxel Networks Corporation (hereinafter referred to as “ZyNetworks”) and Zyxel Networks A/S (hereinafter referred to as “ZyAS Networks”) respectively. The proposal of spin-off had been approved by the Board of Directors of Unizyx on 26th February 2019. ZyNetworks and ZyAS Networks will issue the shares as the consideration of acquisition on the base date of spin-off, 1st April 2019.
Established on August 16th 1989, Zyxel has been continually focused on the needs of telco/service providers (hereinafter referred to as “SPs”), businesses, and home users, and has devoted itself to strengthening its channel brand awareness. After its forthcoming spin-off, Zyxel will concentrate on the development of the telecommunications market and provide complete structural solutions and application services to SPs to meet their customized needs. Furthermore, with increasing demand from businesses in wireless networking and cloud applications, as well as from home users desiring complete and stable connectivity, the new spin-off company, ZyNetworks will focus fully on the development of the channel business in order to provide the products and application services that meet the needs of businesses and home users. By clearly distinguishing between the channel and SP businesses, this spin-off will not only be beneficial for our overall strategic planning, R&D technology, and ability to attract more global professionals, but will also increase opportunities for strategic alliances and scaling up the corporation as a whole.
In the future, based upon the business management and market planning by Zyxel and ZyNetworks, we foresee a rise in incentives that will motivate our employees and attract more talents. As a result, we expect an increase in the profitability and long-term competitiveness of Unizyx, strengthening shareholder equity and creating a triple win for Unizyx, employees and stockholders.
The value of channel business to be split from Zyxel to ZyNetworks is NTD$1,200,000,000 which is the net value of the amount of Assets NTD$2,100,000,000 deduct the amount of Liabilities NTD$900,000,000 regarding the financial statement audited by KPMG as date of 31st December 2018.
ZyNetworks will issue the common stock 72,450,000 shares as the consideration of acquisition, If the amount of the consideration of acquisition exceeds the paid in capital, the exceed amount will be counted on additional paid in capital. In the meanwhile, Zyxel will decrease the capital NTD$724,500,000, the ratio of capital reduction is 50.00%. After the capital reduction, the amount of total assets of Zyxel is NTD$6,523,000,000, the paid in capital is NTD $724,500,000, the net value is NTD$3,849,000,000. The spin-off proposal serves as the restructure of global organization, the shares of Zyxel and ZyNetworks is 100% owned by Unizyx, it will not impact to the equity of shareholders of Unizyx.
Press Contact : Emily Chen
Unizyx Holding Corporation
No. 6, Innovation Road II, Hsinchu Science Park, Hsinchu 300, Taiwan (R.O.C.)
Telephone number : 03-5783942 EXT：88416
Fax number : 03-6663319