LED chipmaker Epistar will completely take over subsidiary Huga Optotech through a share swap in which one Epistar share will be exchanged for 4.85 Huga shares, Epistar has announced. The merger will take effect on December 28, 2012.
The deal will expand Epistar's registered capital to NT$9.1 billion (US$303.3 million) from NT$8.6 billion currently. Epistar holds a 50.85% share in Huga at present.
Huge has a production capacity of 150,000 units of 2-inch equivalent epitaxial wafers a month, and the company is currently running at 70% of its capacity. Meanwhile, Epistar has a capacity of 330,000-340,000 epitaxial wafers.
After the merger, Huga's production lines will focus on the production of small-size, low-power LED chips, while those of Epistar's will be responsible for high-power medium- to large-size LED chips, Epistar noted.
Synergistic effects of the merger are likely to take place in the second quarter of 2013, said Epistar.
