Everlight and Edison Opto Deny Merge Rumor

Representatives from Everlight and Edison Opto have recently rebutted an earlier Digitimes report claiming the two companies were in acquisition talks.

Everlight to focus on production expansion, but has no merge plans

Following Edison Opto's announcement on March 10 that it is arranging a private placement offering of up to 20 million company common shares, the market has speculated Everlight might emerge as one of the main investors, reported Liberty Times. Based on the company’s current share price of around NT$ 30 per share, the private placement offering could raise NT $606 million (US $19.21 million), estimated a China Post report.

“We currently do not have any plans (to acquire Edison Opto),” said Yeh.

Everlight currently is focused on meeting its target of completing its NT $10 billion three year LED  production expansion plan, and at present has no merge demands, said Yeh.

If Everlight acquires Edison Opto, it could immediately attain the company’s production capacity and clients. “Each generation’s equipment is becoming more advanced than the last,” said Yeh. Implying the company will be procuring new equipment to boost its production capacity and market shares, reported Liberty Times.

Last December, Yeh announced the company would be investing NT $10 billion over a period of three years to expand production capacity, and capped max investment at NT $30 billion in five years. The new equipment which is expected to go into operations by 2016 is expected to raise production capacity by 50%. Environmental impact assessments have somewhat delayed the initial stage of Everlight’s factory construction in Southern Taiwan. Yet, according to Yeh the company is on track to meeting its production capacity expansion schedule.

Asked if Everlight has any plans of expanding in China or merging with other Chinese or Taiwanese companies, Yeh denied such plans.

Edison Opto not in talks with any investor yet

Edison Opto has also refuted market rumors recently, saying the company has not been in talks with any strategic investor yet, reported Taiwan Television Enterprise (TTV).

The company will begin the search for a suitable investor after a shareholders meeting on June 24.

Having posted two consecutive years of losses, Edison Opto reported it had a net loss of NT $42.96 million last year, reported China Post. Although, the company recovered most of the losses in 3Q14, profits sharply declined in the following quarter, which concluded with a net loss of NT $35 million. The company's net loss in 2014 was about a quarter of the NT$162 million it incurred in 2013.

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