Solar-grade crystalline silicon wafer maker Sino-American Silicon Products (SAS) has announced its merger with Sunrise Global Solar Energy, a manufacturer of P-type monocrystalline silicon solar cells, through a stock swap where one SAS share is exchanged for 2.16 Sunrise shares. The merger is scheduled to close on January 1, 2014.
SAS currently holds a 50.95% stake in Sunrise and has to issue 56.888 million new shares for exchanging the remaining 49.05% stake, SAS indicated. Consequently, SAS' paid-in capital will increase by 10.87%.
Sunrise's P-type monocrystalline solar cells can reach a maximum energy conversion rate of 20.6% and an average 20.2%, and are particularly suitable for use in roof-mounted PV systems, SAS noted. As Sunrise's existing annual production capacity of 350MWp has been fully utilized, the company can expand capacity at SAS' two factory sites via the merger, SAS indicated.
Sunrise recorded revenues of NT$1.63 billion (US$54.8 million), gross margin of 8.63%, net profit of NT$103 million and net EPS of NT$0.41 for the first half of 2013.
The merger is to vertically integrate SAS' resources with Sunrise's to hike overall operational efficiency and provide turnkey solutions, SAS president Doris Hsu said. Many Japan-based clients have talked with SAS about turnkey solutions, that is, solar-grade wafers matched with high-efficiency monocrystallne solar cells, Hsu said. Therefore, SAS plans to promote turnkey solutions in the Japan market first and then the US and Europe markets, Hsu indicated.
