LED chipmaker Epistar inks strategic alliance with Huga

   Date:2010-06-01     Source:

Taiwan-based LED chipmaker Epistar has announced a plan to form a strategic alliance with fellow maker Huga Optotech, looking to take a 47.88% stake in Huga to become its largest shareholder.

Epistar will issue 78 million new shares in exchange for 184.08 million Huga shares. Huga will also issue 100 million new share at NT$30 per unit to raise additional paid-in capital, and Epistar will subscribe to 44.79 million shares. As a result, Epistar will acquire a total of 47.88% stake in Huga.

While Epistar and Huga will maintain their existing operations, they will share resources including joint procurement and development of products for market segmentation, Epistar chairman Lee Biing-jye said.

Epistar has acquired a 40.35% stake and a 19.30% stake in Taiwan-based LED chipmakers Na Ya Photonics and Tekcore respectively. Epistar, Nan Ya, Tekcore, and Huga will have a total capacity of 296 MOCVD sets at the end of 2010, forming a strategic group that will become a top-2 player in the blue LED segment worldwide, Lee indicated.

 

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