DEBT DRIVER:LeEco’s largest smartphone assembler last year booked a total of NT$1.055 billion in bad debt over two straight quarters because of the Chinese firm
Date: Mar 29, 2017
By: Lauly Li / Staff reporter
Laptop computer maker Compal Electronics Inc (仁寶) yesterday said it plans to spend NT$3.09 billion (US$102.4 million) to subscribe to 2.15 percent of new shares of a subsidiary of Leshi Internet Information and Technology (LeEco, 樂視), to enhance its strategic partnership with the Chinese firm.
“We believe the strategic investment will benefit both Compal and LeEco in the long term,” Compal president Ray Chen (陳瑞聰) told an investors’ conference at the company’s headquarters in Taipei.
The investment is to expand the two firms’ collaboration from the smartphone business to the Internet of Things and virtual-reality sectors in the long term, Chen said, adding that it would be conducted through a Compal subsidiary in Kunshan, China.
The transaction is expected to be completed before June 21, Compal said.