CMC becomes largest shareholder of Prodisc

CMC Magnetics, the largest producer of optical discs in Taiwan, on February 10 announced an additional investment of US$15.6 million in Prodisc Technology, Taiwan’s third largest maker of optical discs, to increase its stake ratio to 11.93%, making it Prodisc’s largest institutional shareholder.

Prodisc recently planned to raise additional capital by issuing new shares to target investors. The company’s board of directors selected CMC at a meeting on February 8, with a transaction price set at NT$3.59 per share, according to Prodisc.

Since Ritek, the second largest maker of optical discs in Taiwan and CMC’s largest competitor, also has a stake of nearly 5% in Prodics, Prodisc could be a platform to minimize pricing competition and encourage cooperation among the top-three makers, industry sources pointed out.

Source: DigiTimes