Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) and solar cell manufacturer Motech Industries Inc. have signed a share subscription agreement under which TSMC will subscribe through a private placement for 75.32 million new Motech shares.
The total consideration is approximately NT$6.2 billion ($193 million), or NT$82.7 per share, representing a 16.9% discount to Motech's three-month average closing price. TSMC will become the largest shareholder of Motech with 20% shareholding through this investment. The transaction is subject to Motech's shareholders' approval and regulatory approval.
‘With the investment, TSMC intends to leverage Motech's established platform to accelerate our time to market, better evaluate opportunities along the solar value chain, and further formulate our overall solar strategy,’ states Dr. Rick Tsai, president of TSMC new businesses.