Compal will become the biggest shareholder of Avalue with 20.5 percent shares after the private placement is completed.

Compal is one of the world's top 5 laptop ODM manufactures and has made vertical arrangement on niche industry through strategic investment in recent years in order to increase growth momentum and profit capacity.

Because of the private placement plan, Avalue can make use of the manufacturing, procuring and R&D ability of Compal to aggressively develop smart hand-held devices, tablets and growing cloud computing technology, which will dominate the future value chain in the Internet of Things.

This plan will increase the competitiveness of Avalue in industrial computer-related products, improve production efficiency and quality, reduce product costs and facilitate R&D of new products. Avalue can also use the customer base of Compal to do cross selling, and expand the future business opportunity in the Internet of Things and win over large-scale orders collectively.