GCS Holdings, a pure III-V compound semiconductor wafer foundry announced it sealed an acquisition deal with Chinese manufacturer San’an Opto. San’an Opto will purchase 100% of GCS Holdings’ stake for US $226 million.

According to financial institutions, GCS Holdings’ capital stock is around NT $580 million (US $17.6 million) and has released two corporate bonds. Based on the data provided by the company, there are approximately NT $285 million remained unconverted out of NT $300 million of GCS-CB1 (Code: 49911). The conversion price is NTD $65.1. Meanwhile, NTD $247 million out of NTD $300 million for GCS-CB2 (Code: 49912) also remains unconverted. The conversion price is NTD $66.7.

The board of GCS Holdings has agreed to merge with San’an Opto and has signed the letter of intent. Meanwhile, GCS Holdings is to be delisted from Taiwanese stock market after it completes the business transaction with San’an Opto.

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

GCS Holdings is expected to conclude the deal by the end of March 2016 while the actual closure depends on local regulations and progress.

Meanwhile, since San’an Opto is registered in China and GCS Holdings in the U.S, the latter’s downstream business involves U.S. national security and aerospace industries. There is no further information to tell whether U.S. government would approve the merger or not.

GCS share dropped 5.5% from NTD $103.5 to NTD $97.0 on March 11, 2016.

(Translator: Emma Chang, Translator, LEDinsidehttp:// Editor: Judy Lin, Chief Editor, LEDinside)