The boards of Taiwan-based PV manufacturers Neo Solar Power (NSP) and DelSolar have approved the second stage of the planned merger of the two companies.
Last month the companies announced plans to combine, forming what is said will be Taiwan’s largest solar cell company by capacity.
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Following successful completion of the first stage of the merger – a tender offer in which NSP acquired a 15% stake in DelSolar – the companies’ respective boards have now approved the second stage.
This will involve a 100% share swap, with each DelSolar share to be exchanged for 0.735 NSP shares.
Delta Electronics, which is currently DelSolar’s largest shareholder, will become the largest shareholder in the new company, taking a 17% stake.
The chairmen of the two companies said they were “optimistic” about the synergies that would result from the merger in areas such as talent, economies of scale and resource sharing.
They said that through integration the company would be able to produce the “most cost-effective” solar cell and module products.
However, some industry observers have questioned whether the expected synergies will materialise, given the two companies’ similar market position.
The merger is likely to be complete by the end of May next year.