| LED chipmaker Epistar has plans to completely take over subsidiary Huga Optotech through a share swap. | |
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Taiwan’s largest chip maker, Epistar, has announced it will completely take over subsidiary Huga Optotech through a share swap in which one Epistar share will be exchanged for 4.85 Huga shares. The merger will take effect on December 28, 2012.
In July of 2010, Epistar took a 47.88% stake in Huga Optotech. The new deal will expand Epistar's registered capital to NT9.1 billion (USD303.3 million) from NT8.6 billion currently. Epistar currently holds a 50.85% share in Huga.
Huga has a production capacity of 150,000 units of 2-in equivalent epitaxial wafers a month, and the company is currently running at 70% of its capacity. Meanwhile, Epistar has a capacity of 330,000-340,000 epitaxial wafers per month.
After the merger, Huga's production lines will focus on the production of low-power LED chips, while those of Epistar's will be responsible for high-power LED chips.
Synergistic effects of the merger are likely to take place in the second quarter of 2013, said Epistar. |
