Solar wafer maker Sino-American Silicon Products (SAS) on May 7 announced a merger with Sino Solar, its joint venture which makes crystalline silicon solar cells, through the acquisition of a 58.12% stake at NT$7.05 per share for NT$810 million (US$27.36 million) in total to increase its stake ratio from 41.88% currently to 100%.
The merger will increase SAS' stake in Taiwan-based mono-crystalline solar cell maker Sunrise Global Solar Energy from 28.74% to 47.48% as Sino Solar is a shareholder of Sunrise. After the merger, SAS will be the surviving company and the official merger date is August 1, 2013.
Sunrise is one of the few mono-crystalline high-efficiency solar cell makers in Taiwan. The firm has developed the CELCO technology to improve P-type mono-crystalline solar cells' conversion efficiency to above 20.2%.
Doris Hsu, president of SAS, noted that currently, the conversion efficiency of N-type mono-crystalline solar cells from international firms is around 20%, but P-type is more cost effective and have lower power loss when assembled into solar modules.
Hsu disclosed that Sunrise has mono-crystalline solar cell capacity around 350MW and is running at almost full capacity.
Hsu believes the solar market has been rebounding. SAS reported first-quarter revenues of NT$4.911 billion, up by 133% on year. SAS saw first-quarter net profits reach NT$219 million and was one of the few solar firms in Taiwan that turned profitable in the first quarter.
Hsu stated that demand from Japan continues to be strong and order visibility is clear to September. In addition, the firm expects growing shipments and rising revenues in the second quarter as prices of polysilicon and wafers stabilize.
GlobalWafers, a semiconductor subsidiary of SAS, reported first-quarter consolidated revenues of NT$3.853 billion, representing an on-year growth above 300%. Net profits were NT$365 million and order visibility is clear to the end of June, according to SAS.
SAS signed a NT$4 billion five-year syndicated loan with a consortium of six banks on May 6.
Doris Hsu, president of SAS
Photo: Digitimes file photo
SAS: Consolidated revenues, Jan 2013 - Mar 2013 (NT$m)
