Taiwan’s E-Ton Solar buys U.S. supplier for $153.7 million
Hong Kong, June 13, 2007 (Reuters)
http://www.reuters.com/article/mergersNews/idUSTP18925220070613
E-Ton Solar Tech Co. (3452.TWO: Quote, Profile, Research), one of Taiwan’s top solar cell makers, on Wednesday said it will pay US$153.7 million in cash and stock for U.S. solar power parts maker Adema Technologies. The move is part of a trend that has seen solar panel makers form tie-ups with materials providers to ensure supply as silicon prices climb amid rising demand for alternate energy sources.
“Through this acquisition, E-Ton Solar will be able to establish a stable long-term ingot supply base from Adema,” Stephen Wu, E-Ton Solar’s founder and chairman, said in a statement. E-Ton said the deal would give it a long-term ingot supply base from Adema, which operates in California.
In a similar deal, China’s Suntech (STP.N: Quote, Profile, Research), a leading maker of solar cells, last July signed a long-term solar wafer supply agreement worth $5-$6 billion with MEMC Electronic Materials (WFR.N: Quote, Profile, Research).
E-Ton, which was advised by Credit Suisse (CSGN.VX: Quote, Profile, Research), expects the deal to close in the third quarter. Shares in E-Ton, which trade on the over-the-counter market in Taiwan, ended down 0.36 percent at T$546 on Wednesday, outpacing a 0.19 percent decline on the broader market.