Sino-American Silicon Products Inc (SAS, 中美矽晶) yesterday announced it would acquire Sino-Solar Corp (中陽光伏) in August for NT$809.86 million (US$27.37 million), aiming to integrate the firms’ solar businesses to strengthen its competitiveness.
The two companies’ boards have approved the merger and set the payment at NT$7.05 per share in cash, SAS said in a statement.
Following the merger, SAS will be the existing entity, it said.
Sino-Solar is a solar energy company that vertically integrates the production of solar wafers and solar cells. The company is a joint venture between SAS and Sunrise Global Solar Energy Co Ltd (旭泓全球光電), which was launched in 2011.
As a result of the merger, SAS will directly own a 47.48 percent stake in Sunrise after acquiring Sina-Solar, compared with the 28.74 percent stake it currently holds.
Both SAS and Sunrise will further their cooperation to achieve the objective of vertical integration, SAS said.
The closing date of the merger is tentatively scheduled for Aug. 1.
Yuanta Securities Corp (元大證券) is acting as the financial adviser for the merger.
SAS reported net income of NT$219 million, or NT$0.41 per share, in the first quarter, following five straight quarters of losses.
The company attributed its improving profitability to the strong performance of its foundry business unit GlobalWafers Co (環球晶圓), which posted NT$365 million in net profit during the first three months of the year.
Despite the gradual improvement in the global solar market, SAS expects to differentiate itself from other manufacturers through the merger, rather than rely on economies of scale to compete, the company said.