In two separate company statements released yesterday, Epistar board approved fully integrating TSMC Solid State Lighting (元芯光电), and non-public issuance of 165 million company shares to raise capital.

TSMC SSL will be fully absorbed by Epistar, and will no longer operate as an independent subsidiary, according to the statement.

Epistar acquired TSMC SSL in early January this year, and has a 97.95% stake in the company.

Epistar logo. (Epistar/LEDinside)

Remaining TSMC SSL shareholders will be paid NT $1.46 per share in cash by Epistar. The merge is scheduled to be completed on June 29, 2015 and will follow regulations outlined in Taiwan’s Enterprises Mergers and Acquisitions Act Article 19, Company Act, and other related laws.

The main goal of the merge is to efficiently integrate resources and related technologies, lower costs and reasonable management, stated Epistar.

On the same day, the company board approved increasing funds through non-public issuance of 165 million shares, which could raise the company’s capital by 13.03%.

The shares issued is estimated to raise a total of NT $8 billion (US $260 million), based on Epistar’s current share value of NT$ 48 per share. However, Epistar’s share capital has been raised to NT $11.02 billion since merging with FOREPI in late December 2014, bringing potential capital raised from the stock issuance to NT $12.67 billion.