Nov 19, 2012 - Taiwanese firms DelSolar Co (TPE:3599) and Neo Solar Power (TPE:3576) plan to consolidate their solar cell and module manufacturing operations, Neo Solar Power and DelSolar's parent Delta Electronics (TPE:2308) said today.
As part of the consolidation, which will also include Delta's system business, Neo Solar is to offer 0.703 newly issued shares and TWD 0.5 (USD 0.02/EUR 0.01) in cash for each share in DelSolar tendered between November 20 and December 14, representing a 5% premium to the closing price of DelSolar's stocks on November 16. Thus Neo Solar aims to acquire between 13% and 15% in DelSolar, after which it will consider a potential merger with the company, according to the announcement.
If the two companies merge, Delta, which currently holds about 54% of DelSolar, is to be the biggest shareholder in the new entity. Delta also plans to invest up to TWD 1.5 billion to help the new entity raise funds.
The newly created company will have a capacity to produce nearly 2 GW of solar cells and 240 MW of solar modules.