Pegatron to buy Ri-Teng

Notebook contract maker Pegatron has decided to write out a cheque for $220 million to buy Ri-Teng Computer.

The Taipei Times said that the China-based Ri-Teng Computer supplies metallic mechanical components to major brand companies for use in products such as notebooks, tablet PCs, e-readers, desktop computers and monitors. The outfit is owned by RIH LI International (Samoa).

It is all part of a cunning plan by Pegatron to step up its production of manufacture mechanical parts. It will also give it a better customer base and after-sale services. Pegatron was once the manufacturing part of Asustek which was spun off.

The outfit hit the news this week when it was claimed by the Chinese-language Economic Daily News that it would be the contract maker for Apple’s digital media receiver iTV.

Pegatron took the step of denying the rumour in a stock exchange report, which is the company equivalent of swearing on your children’s life.