URE gets $90m financial backing from Taiwanese government

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The Taiwanese government has agreed to invest TW$2.78 billion (US$90.1 million) in the United Renewable Energy company (URE) being formed by Taiwanese solar cell makers Neo Solar Power, Gintech Energy and Solartech Energy.

In a filing with the Taiwanese stock exchange, Neo Solar Power (NSP) said it privately placed 334,291,702 shares worth TW$2.78bn.

News website Focus Taiwan reports all the shares were bought by the state’s National Development Fund and government-owned glass manufacturer Yao Hwa Glass Co. Ltd. An extraordinary shareholders meeting will be held to discuss the transaction on November 20, the article adds.

The Taiwanese government revealed its intention to back the newly created solar manufacturing entity in January, after NSP, Gintech and Solartech had announced plans to merge last October.

NSP, which is temporarily keeping its name, will remain as the surviving company after the merger, and chairman Sam Hong will take the same role with successor company URE.

Meanwhile, NSP announced revenue for the first nine months of the year reached TW$8.09bn – an 18.22% year-on-year increase from TW$6.85bn.

“Gintech, Solartech, and NSP completed the merger, United Renewable Energy (URE) is in [the] transformation stage, and will continue the industry integration, and lead the Taiwan solar industry into new 2.0 era,” NSP said in a statement.