Shareholders approve Epistar acquisition of Formosa
In a special general meeting yesterday, Epistar's shareholders approved the deal (announced in June) to acquire smaller Taiwanese LED firm Formosa Epitaxy. Formosa's shareholders have also approved the deal in a separate shareholder meeting.
Epistar currently ranks as the world's largest aluminum gallium indium phosphide epitaxial wafer and chip supplier and the second-largest indium gallium nitride epitaxial wafer and chip maker.
After the acquisition, Epistar will become the biggest vendor of both LED products and will have a 30-40 percent share of the global LED epitaxial wafer and chip market. The company expects the acquisition to be completed by the end of this year.
As reported in the China Post, Epistar's Chairman Lee Biing-jye said his company is keen to raise its economy of scale, as a larger-sized supplier in the global LED industry could grasp a larger market share.
Lee also said a larger Epistar is expected to meet rising demand in 2015, in particular in the second quarter of the year, when peak season effects could boost shipments.
Taiwan's Fair Trade Commission approved the acquisition deal last week.