Asus to slash investment in subsidiary

Taiwanese vendor Asus will decrease its stake in a contract manufacturing subsidiary by this summer as part of a plan to simplify operations.

According to Reuters, Taiwan’s Commercial Times reported that Asus will cut its investment in wholly-owned Pegatron by 1 June – a month earlier than expected.

The vendor’s board of directors approved plans to reduce its holding in the subsidiary to 25 per cent in order to reduce any conflict of interest between the two firms.

The spinoff company could then be listed as early as 24 June, the Commercial Times reported.

Asus has not made an official comment.