Following successful completion of the first-stage tender offer by Neo Solar Power Corp (NSP) to acquire 15% stake of DelSolar Co., NSP and DelSolar have approved the second-stage merger via 100% share swap, with each DelSolar share to be exchanged for 0.735 NSP shares.
NSP will be the surviving entity and remain the same company name after the merger. DelSolar's current largest shareholder, Delta Electronics Inc., will become the largest shareholder in the combined entity post-share-swap, with a 17% stake.
Closing date of the merger is tentatively set on May 31, 2013, subject to receipts of regulatory approvals.
Last month, Delta Electronics and NSP entered into a strategic cooperation plan for forming a large solar manufacturing entity in Taiwan. The combined company is expected to have a solar cell manufacturing capacity of nearly 2 GW