Compal Electronics, Inc. (hereinafter referred to as “Compal”; Ticker: 2324) and Compal Broadband Networks, Inc. (hereinafter referred to as “CBN”; Ticker: 6674) respectively convened a board meeting today (9/18) and approved a share swap transaction for cash consideration (hereinafter referred to as the “Share Swap”), pursuant to which Compal will acquire 100% of the shares of CBN.
CBN is currently a subsidiary in which Compal directly holds a 42.60% equity interest. The Share Swap consideration is NT$18.50 per share in cash, representing a premium of approximately 18.21% to CBN's closing price on the trading day immediately preceding the board resolution date. CBN expects to convene an extraordinary general meeting on November 9, 2026 to discuss the Share Swap and related resolutions, and the record date of the Share Swap (hereinafter referred to as the “Share Swap Record Date”) is tentatively set as December 31, 2026. Upon completion of the Share Swap, CBN will become a wholly owned subsidiary of Compal, and its shares will be delisted from the TWSE and its public company status will be withdrawn on the Share Swap Record Date.
In recent years, the global market environment has evolved rapidly, and the industry competition has continued to intensify. In response to external challenges and market opportunities, CBN has continued to optimize its operating efficiency and resource allocation to strengthen its overall competitiveness, while actively expanding its global operations. Besides establishing North American business unit last year to deepen its presence and customer service in the North American market, CBN has kept enhancing its global supply chain footprint and production flexibility, while expanding its next-generation broadband and wireless networking products and service. Through ongoing adjustments to its market, product and operational strategies, CBN aims to build a solid foundation for its mid-to-long-term development.
Compal believes that Edge AI will be a key trend boosting the next generation of computing architectures. As AI computing increasingly extends from Cloud to Edge and Terminal Devices, demand for high-speed, low-latency, high-reliability and always-on connectivity is expected to drive communication technologies toward wireless transformation and diverse integration. Compal has already established capabilities in mobile and wide-area connectivity technologies, including 5G/B5G/6G and non-terrestrial network (“NTN”) satellite communications. By integrating CBN’s networking technology resources (Router/Gateway, Wi-Fi, Ethernet, Network Software), Compal anticipates building a more comprehensive multi-mode communication platform to provide customers with integrated solutions, and sharpen its competitiveness in system integration, R&D, and manufacturing for emerging application fields, such as Edge AI, Physical AI, Industrial IoT.
In addition, in light of the industry challenges and opportunities ahead for CBN, Compal considers that the privatization of CBN will improve decision-making efficiency, further enhance resource synergies, and enable more flexible deployments of group resources. With a more agile decision-making framework, CBN will be better positioned to respond promptly to the market shifts and capture the opportunities. Compal’s diversified global footprint will also provide stronger support for CBN’s expansion strategy in recent years, further elevating its market competitiveness. Through this internal group consolidation, Compal aims to optimize the overall operational efficiency and create a greater value for its customers and shareholders.
About Compal
Founded in 1984, Compal is a global leader in notebook PCs and smart devices. Backed by strong R&D and manufacturing capabilities, Compal partners with leading brands worldwide to deliver innovative technology solutions. The company is consistently ranked among Taiwan's top manufacturers and has been recognized on the《Forbes Global 2000》list for many years. In addition to its core businesses, Compal is expanding into AI servers, automotive electronics, medical tech, and advanced communications. Headquartered in Taipei, Taiwan, Compal operates manufacturing facilities in the United States, Taiwan, China, Vietnam, Mexico, Brazil, and Poland. For more information, visit www.compal.com
About CBN
Founded in 2009 and a member of the Compal Group, CBN specializes in broadband and networking solutions, including smart gateways, fiber access equipment, 4G/5G communication devices, and home Wi-Fi products. The company continues to invest in next-generation technologies such as 5G Fixed Wireless Access (FWA), high-speed fiber broadband, and advanced Wi-Fi solutions. Serving customers across Europe, the Americas, and Asia, ICBN provides innovative connectivity solutions to telecommunications and cable operators worldwide. For more information, visit www.icbn.com.tw
Media Contact
Compal Jack Wang VP and Spokesperson +886-2-8797-8588 Investor@compal.com
CBN Isaac Ho Director +886-3-560-0066 Investor@compalbn.com