Taiwanese solar wafer maker Sino-American Silicon Products Inc (SAS, 中美晶) yesterday said its LED sapphire substrate unit will merge with Crystalwise Technology Inc (兆遠電子) through a share-swap deal, with the latter becoming the surviving entity.
SAS said in a statement that the company’s board approved the deal yesterday, which will see each of Sino Sapphire Co’s (中美藍晶) common shares be exchanged for 1.8967 of Crystalwise’s shares.
The deal aims to “integrate technology and resources of both parties, improve operating performance and strengthen overall competitiveness,” the statement read.
The new entity, after the deal closes on Dec. 31, will have a consolidated paid-in capital of about NT$1.68 billion (US$56.9 million), SAS said in the statement.
The new Crystalwise will continue to lead the sapphire substrate market in Taiwan in terms of capacity and market share, which SAS said would likely to achieve 800,000 million units of flat-patterned sapphire substrates and 510,000 million units of high-value patterned sapphire substrates by the end of the year.
After the planned merger, SAS will become the biggest shareholder in the new Crystalwise, possessing about 43 percent of its shares.
The share-swap deal needs regulatory approval as well as approval by shareholders of the two companies, SAS said.
Shares of SAS rallied 3.92 percent to NT$53 yesterday ahead of the merger announcement, while Crystalwise edged up 0.46 percent to NT$32.5.
In related news, solar cell makers Motech Industries Inc (茂迪) and Gintech Energy Corp (昱晶) yesterday reported losses in the first quarter on falling prices and weak demand.
Motech said it saw a net loss of NT$1.08 billion in the first quarter, and revenue fell 1 percent to NT$3.89 billion in the first quarter from the previous quarter.