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Neo Solar to buy DelSolar stake, make solar cell giant

Neo Solar, a leading photovoltaic (PV) cell manufacturer, will purchase a stake in DelSolar Co., a subsidiary of Delta, to create a company that is set to become Taiwan's largest and the world's No. 2 solar cell maker, both Neo Solar and Delta announced yesterday,

Under the deal, Neo Solar is to acquire a 13- to 15-percent stake in DelSolar, trading 0.703 of its shares and cash of NT$0.5 for each share of DelSolar, in which Delta currently has a 54-percent stake.

The deal is expected to combine Neo Solar and DelSolar's competency in solar cell manufacturing with Delta's capability in putting together PV systems. The combination is expected to create a highly competitive supply chain in the global PV industry.

Neo Solar meanwhile said it does not rule out acquiring more of DelSolar's stake in the future. Once the acquisition is executed, Delta is expected to become the largest shareholder of the company.

Delta yesterday aired its support for the current Neo Solar management team and promised to give its assistance in the integration of DelSolar's PV cell, module and systems businesses into Neo Solar. Delta also announced its intention to provide a maximum of NT$1.5 billion that will go toward the fundraising activities of the new company.

Neo Solar currently has PV cell capacity of 1.3 gigawatts (GW) and PV module capacity of 60 megawatts (MW). DelSolar meanwhile has cell capacity of 600MW and module capacity of 180MW. Together, the new company will have PV cell capacity of nearly 2GW, becoming Taiwan's largest and the world's second largest. Module capacity will total 240MW.

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