LED makers Epistar and Lextar Electronics have jointly announced the establishment of a holding company under which the two firms will be wholly-owned but independently operated subsidiaries.
Epistar will exchange one share of its stock for 0.5 share of the holding company and Lextar will exchange one share for 0.275 share, with the swap expected to be materialized on October 20, 2020. Then, both Epistar and Lextar will be delisted from the Taiwan Stock Exchange and the holding company will be listed.
The companies look to create synergies combining their resources. Epistar will focus on producing LED wafers and chips, and Lextar on packaging and modules, with the former to become a main supplier of LED chips for the latter.
They will integrate technology and product development to avoid overlapping investments and to quicken commercialization of R&D results. Epistar and Lextar will jointly develop application of mini LED and micro LED technologies and set up corresponding supply chains, according to the companies.
The holding company will focus on investment in mini/micro LED, III-V compound semiconductor devices and smart sensing in a bid to enhance international competitiveness, they said.
The merger is motivated by their expectations that mini LED applications will take off, and as they are leaders in mini LED technology, forming a holding company can combine their resources to extend their leadership, Lextar vice president and CFO BY Chang said.
Lextar VP BY Chang (left) and Epistar VP Chang Shih-shien announce the merger plan
Photo: Siu Han, Digitimes, June 2020
Article translated by Adam Hwang
