Gigabyte Spinning off Its $30 Million Server Business

Gigabyte Technology has decided to spin off its server business as a wholly owned subsidiary under the name of Giga Computing Technology. Gigabyte says it will complete this corporate maneuver on January 1, 2023. Upon inception, the new business entity will be valued at the equivalent of approximately $30 million using today’s exchange rate.

The mechanism by which Gigabyte will spin off its server business is by creating the new company with 83.36 million shares, and valuing the shares at NT$10 each. Doing the math indicates that the wholly owned but then separate server business, Giga Computing Technology, will be worth NT$833.6 million (USD $30 million). Gigabyte assured its current shareholders that the overall business will not be affected by the transfer, reports Taiwan’s DigiTimes, and shareholder equity will be unaffected too.