Taiwanese solar cell makers Neo Solar Power Energy Corp (新日光能源), Gintech Energy Corp (昱晶能源) and Solartech Energy Corp (昇陽光電) yesterday inked a letter of intent to merge via a share swap in an bid to compete with global rivals.
The resultant entity would be the world’s second-largest solar company in terms of installed capacity, the companies said.
The firms plan to sign a trilateral merger agreement in late December and aim to complete the transaction in the third quarter of next year, they said in a joint statement.
Photo: Chang Chia-ming, Taipei Times
“The nation’s solar power industry has been struggling for years. We believe the merger will create a competitive business model,” Neo Solar chairman Sam Hong (洪傳獻) told a news conference at the Taiwan Stock Exchange.
By melding each company’s capabilities, the new firm is to offer vertical integration services from solar cell and module manufacturing, to photovoltaic systems assembly, Hong said.
The new entity would also have a more competitive cost structure, given its larger scale, he said.
The new company would have a total installed capacity of 5 gigawatts (GW) of solar cells — about 10 percent of the global market based on the projected worldwide installed capacity of 500GW this year, Hong said.
The companies also plan to expand their combined annual production capacity of solar modules to more than 3GW two to three years after the merger, compared with their current 1GW, Hong said.
The firms also aim to sell 1GW of photovoltaic systems annually within five years, he said.
Based on the letter of intent, Gintech shareholders will be able to swap each of their shares for 1.39 common shares of Neo Solar, while Solartech shares can be swapped for 1.17 Neo Solar shares, the companies said.
After Gintech and Solartech are absorbed into Neo Solar, the company is to be renamed United Renewable Energy Co (UREC, 聯合再生能源), the statement said, adding that Hong is to be the chairman and Gintech president Pan Wen-whe (潘文輝) is to serve as chief executive officer.
The deal was granted the government’s verbal support ahead of the announcement, as it is in line with the administration’s policy of developing the nation’s renewable energy industry and increasing the contribution of “green” power to the nation’s energy grid to 20 percent by 2025, Hong said.
The firms are to soon apply for capital injections from the National Development Fund and government affiliate Yao Hua Glass Co (耀華玻璃), Hong said.
It is too early to say how much UREC will receive from the government and whether it would hold a seat on the company’s board, Hong said.
The National Development Council said it has not yet received the application, but added that it supports the consolidation of solar firms to increase production capacity and competitiveness.
In a separate announcement, Neo Solar yesterday said it is to acquire 46.1 million shares, or 24.11 percent, of General Energy Solutions Inc (永旺能源) for NT$20.7 per common share in the open market from today to Nov. 6.
The company is making the move in a bid to increase its ownership in General Energy from 75.89 percent to 100 percent.
“We believe we can provide better renewable energy solutions via Neo Solar’s manufacturing strength and General Energy’s power plant building and managing capabilities,” Neo Solar said in a news release.
CALL FOR SUPPORT: President William Lai called on lawmakers across party lines to ensure the livelihood of Taiwanese and that national security is protected President William Lai (賴清德) yesterday called for bipartisan support for Taiwan’s investment in self-defense capabilities at the christening and launch of two coast guard vessels at CSBC Corp, Taiwan’s (台灣國際造船) shipyard in Kaohsiung. The Taipei (台北) is the fourth and final ship of the Chiayi-class offshore patrol vessels, and the Siraya (西拉雅) is the Coast Guard Administration’s (CGA) first-ever ocean patrol vessel, the government said. The Taipei is the fourth and final ship of the Chiayi-class offshore patrol vessels with a displacement of about 4,000 tonnes, Lai said. This ship class was ordered as a result of former president Tsai Ing-wen’s (蔡英文) 2018
‘SECRETS’: While saying China would not attack during his presidency, Donald Trump declined to say how Washington would respond if Beijing were to take military action US President Donald Trump said that China would not take military action against Taiwan while he is president, as the Chinese leaders “know the consequences.” Trump made the statement during an interview on CBS’ 60 Minutes program that aired on Sunday, a few days after his meeting with Chinese President Xi Jinping (習近平) in South Korea. “He [Xi] has openly said, and his people have openly said at meetings, ‘we would never do anything while President Trump is president,’ because they know the consequences,” Trump said in the interview. However, he repeatedly declined to say exactly how Washington would respond in
WARFARE: All sectors of society should recognize, unite, and collectively resist and condemn Beijing’s cross-border suppression, MAC Minister Chiu Chui-cheng said The number of Taiwanese detained because of legal affairs by Chinese authorities has tripled this year, as Beijing intensified its intimidation and division of Taiwanese by combining lawfare and cognitive warfare, the Mainland Affairs Council (MAC) said yesterday. MAC Minister Chiu Chui-cheng (邱垂正) made the statement in response to questions by Democratic Progressive Party (DPP) Legislator Puma Shen (沈柏洋) about the government’s response to counter Chinese public opinion warfare, lawfare and psychological warfare. Shen said he is also being investigated by China for promoting “Taiwanese independence.” He was referring to a report published on Tuesday last week by China’s state-run Xinhua news agency,
‘ADDITIONAL CONDITION’: Taiwan will work with like-minded countries to protect its right to participate in next year’s meeting, the foreign ministry said The US will “continue to press China for security arrangements and protocols that safeguard all participants when attending APEC meetings in China,” a US Department of State spokesperson said yesterday, after Beijing suggested that members must adhere to its “one China principle” to participate. “The United States insists on the full and equal participation of all APEC member economies — including Taiwan — consistent with APEC’s guidelines, rules and established practice, as affirmed by China in its offer to host in 2026,” the unnamed spokesperson said in response to media queries about China putting a “one China” principle condition on Taiwan’s
RSS