March 29 (Renewables Now) - The shareholders of Neo Solar Power (TPE:3576), Gintech Energy (TPE:3514) and Solartech Energy (TPE:3561) approved the planned merger of the three Taiwanese solar manufacturers at separate meetings held on Wednesday.
As previously announced, the three loss-making solar product makers will combine their operations into a single company, with Neo Solar becoming the surviving entity and changing its name to United Renewable Energy Co Ltd (UREC). The government of Taiwan will take a stake in the newly-formed company, through the National Development Fund and Yao-Hwa Co Ltd, by subscribing to shares under private placements.
The transaction is currently being reviewed by Taiwan’s Fair Trade Commission and has already received clearance from competition watchdogs in China and Germany, Neo Solar chairman Sam Hong said on Wednesday, as cited by The Taipei Times. According to Hong, the merger should be completed on October 1, 2018.
The chairman was further quoted as saying that the combination and the resulting synergies should help achieve a turnaround in operations. He has added that the company anticipates by the end of the year a TWD-4-billion (USD 137m/EUR 111m) capital injection from government affiliates to finance the transaction.
(TWD 10 = USD 0.343/EUR 0.278)