Epistar Corp (晶電), the nation’s largest LED chipmaker, yesterday said it planned to acquire a nearly 48 percent share of smaller rival Huga Opteotech Inc (廣稼) via a cash-and-share deal to boost competitiveness and efficiency.
The consolidation came amid LED chip supply constraints following the fast uptake of LED TVs from Samsung Electronics Co and other consumer electronics giants.
It marks the second acquisition Epistar has launched to secure more capacity after buying 20 percent of LED chipmaker Tekore Co Ltd (泰谷) for NT$722 million (US$22.4 million) in October.
Epistar said the board yesterday approved the subscription of new shares of Huga for NT$1.5 billion and a share-swap plan, according to the company’s filing with the Taiwan Stock Exchange. Epistar plans to issue an unspecified amount of new shares for the deal. Each Epistar share will be exchangeable for 2.36 Huga shares.
After the transaction, Epistar will become Huga’s largest shareholder with a 47.88 percent stake, the statement said.
The deal is scheduled to close on July 19.
Epistar has accumulated NT$5.68 billion in revenues in the first four months of the year, up 89 percent from a year ago. Huga posted 21 percent year-on-year growth in revenues to NT$1.41 billion in the January-to-April period.
The stock price of Epistar rose 1.59 percent to NT$96 yesterday. Shares of Huga leapt 7.97 percent to 33.6 on the Emerging Stock Market.