LED chipmaker Epistar plans to issue 250 millionn new shares for private placement. The firm has also decided to deal out 2012 cash dividend of NT$0.536 (US$0.018).
The decisions were made during a hsareholders meeting last week.
The private placement will be carried out in two stages and be completed within one year of the shareholders meeting. The firm plans to add three international lighting system makers as strategic investors through the private placement.
Epistar disclosed that to maintain competitiveness amid the commercialization of LED lighting, firms have to continue to develop new products and cooperate with strategic partners to enter new markets. The main objective of the private placement is to add strategic investors to achieve virtual vertical integration.
The 250 million shares will account for 21.14% of total company shares. The newly issued shares will be divided among the three strategic investors with each owning less than 10% of the company, said Epistar.
Epistar reported 2012 consolidated revenues of NT$17.531 billion with gross margin of 15.49%. However, due to non-operating loss, the firm reported 2012 net loss of NT$1.117 billion.
Epistar noted that the LED market condition is expected to improve in the second half and the firm hopes Huga Optotech, a subsidiary of Epistar, to return to profitability in 2013. Epistar predicts 2013 chip shipments to reach 128.613 billion units.
