Photovoltaic news and pv jobs

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

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.

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

NSP

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.