Crystal electric accident and canyuan, three gun lying into focus

The latest Taiwan LED industry mergers and acquisitions, let the other side of the Strait, a three time become the focus of the market.

In June 30th, EPISTAR and canyuan photoelectric synchronous meeting of shareholders is to be announced through the convertible merger, 3.448 shares for every 1 shares issued canyuan convertible after the new crystal crystal electric, electric capital of more than ten billion yuan (NT, the same below). The crystal electric and canyuan yesterday (June 30th) day closing price of 74 yuan and 18.25 yuan, the premium rate of about 17.6%.

The three quickly became the focus of the market, the reason from the earlier a case of land owned shares. In 2012, three canyuan private subscription shares accounted for 19.77%, becoming the largest single shareholder canyuan. If the successful acquisition of crystal electric canyuan, three choose to hold the crystal electric shares, which means that the enemy has power and three become the interests community.

There are industry peers that mergers have a negative impact on the three, signed a reluctant epitaxial chip manufacturers responsible for LEDinside said the acquisition of crystal electric canyuan is for an optoelectronic to a blow, especially in the road capacity to catch up, plus canyuan existing layout, crystal electric system the scale of production capacity can not Sanan Optoelectronics catch up, this move is intended to deter later pursuers.

"It seems that three was completely canyuan put out a crystal electric this move is too high, the top competitor became shareholders. A LED industry analyst said, "is a crystal electric, three is dominant, in the mountains, sometimes half should be difficult to influence each other, each is the best way to attack each other familiar market, Zhongce is an Trojan horse, the worst is crystal electric drive control stake in three. "

An optoelectronic canyuan October 2013 shares and 19.77% shares to become the largest shareholder of canyuan photoelectricity, GF Securities analyst Xu Xingjun believes that the original three shares canyuan in Taiwan of mainland investment under the premise, to capacity, patent and channel. Even if there is no canyuan, Sanan Optoelectronics in the production, and the patent channel has been through other ways to the success of the layout. Therefore, Xu Xingjun believes that the crystal electric and canyuan with almost no impact on three.

From the industry perspective, Xu Xingjun believes crystal electric canyuan combined positive and three, there are three reasons: first, the industry lost a heavyweight game player, and the big customer needs two or three suppliers to expand demand unchanged, so three new customers, in addition to reducing the number of game player oligopoly negotiations; second, crystal electric and canyuan after the merger, Taiwan EPISTAR chip industry a dominant pattern to determine the basic lack of internal competition, is not conducive to the long-term development of Taiwan chip industry; moreover, crystal electric canyuan means with the purchase of new crystal electric stove plans to cancel or significantly reduced, and the three future purchase of new stove in terms of cost or the performance is better than canyuan, competitiveness is superior to the crystal electric and canyuan merger.

From the same crystal electric combined canyuan event information and Ping An Securities smell good. Ping An Securities analyst Lin Zhaotian believes that the three canyuan of little significance, but is a drag on the financial statements. But after the exchange, Sanan optoelectronics may become the second largest shareholder of crystal electric. Three or directly sell the stock investment income, or continue to hold the crystal electric stock. If the future policy to further open Taiwan, the company has the ability to further increase the holdings of the largest shareholder.

Sanan optoelectronics Secretary Wang Qing said that the acquisition of crystal electric canyuan is good for three, three optical acquisition canyuan strategic intent was frustrated because of regulatory factors. The mergers and acquisitions increase the choice of three, a possible merger canyuan in Sanan can choose to vote against the bill, and start the terms of the repurchase, canyuan must hold the stock repurchase will follow the three, repurchase price, three investment have profit; second may, three replaced crystal electricity shares through canyuan shares held, become the second largest shareholder of crystal electric, it is also a good option for the future have the opportunity to also have more cooperation with crystal electric, three that crystal electric approach is very generous. And this horizontal integration and enhance the industry concentration is conducive to the development of cross-strait LED epitaxial chip industry. (text / LEDinside Amber)

More LED related information, please click on the Chinese LED network or WeChat public account (cnledw2013).