Taiwan: NSP and DelSolar plan to form country's largest solar company

19. November 2012 | Industry & Suppliers, Markets & Trends | By:  Becky Beetz

Taiwan’s Neo Solar Power (NSP) and DelSolar Co. have announced their intention to consolidate their photovoltaic cell and module businesses, thus creating the country’s largest solar company. While the strategic cooperation will begin with a tender offer, plans for a merger are on the table.

Neo Solar Power HQ building

NSP has a cell capacity of 1.3 GW and module capacity of 60 MW.

The two parties held a press conference today, Monday November 19, to announce their plans. NSP said it would launch a tender offer for a 13 to 15% stake in DelSolar between November 20 and December 14.

"Each DelSolar share tendered will receive 0.703 newly issued NSP share and NT$0.5 cash (around €0.013, US$0.017) as consideration, implying around 5% premium to DelSolar’s closing price as of November 16," said NSP in a statement released.

The tender will see NSP’s and DelSolar’s photovoltaic cell and module businesses combined. The systems business of Delta Group – which owns a 54% stake in DelSolar – will also be added to the new entity.

Overall, NSP has a cell capacity of 1.3 GW and module capacity of 60 MW, while DelSolar has 600 MW and 180 MW, respectively. Combined, the companies will boast a cell capacity of nearly 2 GW, and a module capacity of 240 MW.

Once the tender offer has been completed, NSP said it would consider a merger with DelSolar "equivalent to the tender offer". If the merger goes ahead, Delta will become the majority shareholder.

"Delta agreed to support current NSP management team and to assistant [sic] NSP in integrating DelSolar’s solar cell, module and system businesses," added NSP. It is also said to be prepared to participate in fund raising activities up to NT$1.5 billion.

To leave a comment you must first sign in or register your details

No comments

No comments have been submitted yet. Why not login or register and be the first?

Daily newsletter

Keep your finger firmly on the photovoltaic pulse: sign up for our daily newsletter

Magazine subscription

Choose between a digital and print subscription from pv magazine's online shop. A non-subscriber? Check out our sample articles.

Press releases

Want to publish your press releases for free? Simply log in or register, enter the information you want to appear and we'll publish it for you!