Sat, Jan 14, 2012 - Page 11 News List

SAS negotiates a lower-priced deal for Japanese firms

By Kevin Chen  /  Staff Reporter

Taiwanese solar wafer maker Sino-American Silicon Products Inc (SAS, 中美晶) yesterday said it had reached an agreement with Covalent Materials Corp to lower the purchase price of the Japanese firm’s two subsidiaries.

SAS said it had slashed the price by 20 percent to ¥28 billion (US$365 million) for its acquisition of Covalent Silicon Corp and Covalent Materials Sekikawa, two subsidiaries of Covalent Materials Corp that are engaged in semiconductor wafer manufacturing, according to a company statement.

In August, SAS announced it would acquire all the shares US private equity funds Carlyle Group and Unison Capital Inc own in the wafer manufacturing business of Covalent Materials Corp for ¥35 billion in cash.

The new deal comes as the solar industry has seen falling wafer and cell prices for several months as Chinese firms expand capacity, while worldwide consumption dwindles.

SAS said the lower-priced deal was expected to have an accretive effect on its net asset value per share and its earnings per share. It also expects to see improved competitiveness in the semiconductor business, with a larger market share, according to the statement.

SAS said the acquisition would improve the operations of its semiconductor business, especially the production scale and technological strength of its eight-inch wafer product line.

“Production at the company’s semiconductor wafer business will increase by nearly four times, which will make it [SAS] the world’s sixth-largest semiconductor wafer manufacturer, closing the gap on the top five producers,” it said.

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