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San’an Opto buys GCS Holdings for US$ 226 mn

San’an Opto buys GCS Holdings for US$ 226 mn

By BizLED Bureau

Mar 14, 2016: Chinese ultra-high bright LED epitaxial products manufacturer San’an Opto has sealed an acquisition deal to purchase 100% of GCS Holdings’ stake for US$ 226 million. GCS Holdings is a pure III-V compound semiconductor wafer foundry service provider that manufactures high-quality, high-performance semiconductor devices.

According to the reports from financial agencies, GCS Holdings’ capital stock worth is US$ 17.6 mn and it has released two corporate bonds. There are close to US$ 8.7 million remained unconverted out of US$ 9.2 million of GCS-CB1 (Code: 49911). The conversion price is US$ 2 million. Meanwhile, US$ 7.5 million out of US$ 9.2 million for GCS-CB2 (Code: 49912) also remains unconverted. The conversion price is US$ 2 million.

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A decision was taken by the GCS Holdings board to merge with San’an Opto. A Letter of Intent (LoI) has been signed and GCS Holdings will be delisted from Taiwanese stock market once the business transaction process with San’an Opto is completed.

In addition to the transaction, GCS Holdings will not apply for trade suspension in advance as company’s stake is listed in the secondary market in Taiwan.

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Officials are expecting to conclude the GCS Holdings deal by the end of March 2016. However, the actual closure of the deal depends on local regulations and processes.

San’an Opto, the ultra-high bright LED epitaxial products manufacturer, is registered in China.  GCS Holdings in registered in the US and company’s business involves US national security and aerospace industries. There is no current information whether US government would approve the merger between GCS Holdings and San’an Opto. GCS shares have seen a drop of 5.5% in the share market on March 11, 2016.

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