Global heavyweight to invest in solar wafer maker
U.S.-based MEMC Electronic Materials Inc. will make an equity investment in Taiwan’s solar wafer producer Eversol Corp., according to locally-based Gintech Energy Corp., seller in the proposed transaction.
MEMC is one of the world’s top five suppliers of silicon wafers and multi-crystalline solar wafers, and holds a 5-percent stake in solar cell maker Gintech Energy. With the proposed deal, MEMC will become the first global solar energy heavyweight to have extended its reach to the upper and middle stream of Taiwan’s photovoltaic sector.
Eversol is a joint venture established in September 2007 by Gintech Energy and Everlight Electronics Co. Ltd., one of Taiwan’s leading light-emitting diode manufacturers. Eversol Chairman Calvin Ho is the exclusive agent in the Asia-Pacific area for U.S.-based GT Solar Inc., a leading supplier of process design and equipment for the production of polysilicon and multi-crystalline ingots for solar cells.
Industry experts see the deal as a positive move in the industry’s development, saying that it will put MEMC in a better position to compete with the island’s polycrystalline wafer makers, including Sino American Silicon Products Inc., Green Energy Technology Inc. Ltd. and Wafer Works Corp.
Executives from Gintech Energy said it holds more than 10 million Eversol shares, amounting to an 8-percent stake in the company. The proposed transaction is part of an on-going negotiation with MEMC for “more competitive contract prices” for silicon wafers, they added.
Eversol’s share traded up NT$0.12 to close at NT$50.8 in the Emerging Stock Market Dec. 8. Based on the Dec. 8 closing price, Gintech Energy’s Eversol shares are worth more than NT$500 million (US$15.46 million).
Gintech Energy officials said that the final price of the deal has not been set. They emphasized that shareholders’ rights will not be affected by the transaction, which is expected to close by the end of the year at the earliest. (SFC-HZW)
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