Neo Solar Power (NSP) and DelSolar Co. each held board meetings today, December 19, in order to approve the second stage of the merger between the two companies. If final approval is received, they will carry out a 100% share swap, which will see each DelSolar share exchanged for 0.735 NSP shares.
When complete, the new company will be named Neo Solar Power. Overall, however, DelSolars current largest shareholder Delta Electronics, Inc., will become the biggest shareholder of NSP with an around 17% stake.
Both companies have scheduled to hold an extraordinary shareholders meeting on February 6 to finalize the decision. "Closing date of the merger is tentatively set on May 31, 2013 subject to receipts of regulatory approvals," said DelSolar in a statement released.
On November 19, NSP and DelSolar announced their intentions to consolidate their photovoltaic cell and module businesses. Following the news, a tender offer was launched by NSP for a 13 to 15% stake in DelSolar between November 20 and December 14. It has since acquired a 15% stake.
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.