Lunda and Power Alliance merge benefits 1+1>2 AUO successfully jumped to Taiwan LED "second brother"

AUO Group's two LED factories, Lunda Electronics and Power Alliance, announced the merger on September 13. The conversion ratio is tentatively set to 2 shares of Wei Li Meng and 1 share of ordinary shares of Lunda. The transaction amount exceeds NT$ 2.1 billion due to The combined LED revenues of the two companies have exceeded 100 million and Guangbao, and will become the second largest LED factory in Taiwan after Jingdian.

According to reports, the current issue of land-based panel factories and LED factories in Taiwan is in full swing. As the Ronda's one-stop production model is quite in line with the appetite of developing LED lighting in mainland China, at least two land-based factories have locked in Lunda. It also includes the largest LED factory in the mainland.

The industry speculates that after the expansion of its LED business, AUO Group will be able to strive for a better negotiation advantage once it negotiates with the panel package. Therefore, the merger is a win-win situation for AUO, Ronda and Power League.

In addition, Power League is China's largest T5 lamp supplier, China Electric has its own brand of East Asia Lighting, this merger will deepen the cooperation between Ronda and CLP, and enhance their advantages in the LED lighting market.

The board of directors of Ronda and Power Alliance yesterday passed two mergers, with Lunda Electronics as the surviving company. The consolidated base date was tentatively scheduled for February 1, 2013. After the merger, Lunda will issue approximately 70,000 shares for conversion. The amount of capital increased from the original NT$4.2 billion to 4.9 billion.



Su Fengzheng, chairman of Longda Electronics, said that Ronda is the top 3 LED industry in Taiwan and the only vertically integrated company. This merger is an effective resource integration, and it has industrial development and competitiveness. Positive help.

In 2010, Longda Electronics acquired Kaiding Technology, the largest LED backlight packaging factory in Taiwan at that time, and had successful experience in the integration and management of resources, production and supply chain. The merger of Lunda and Power Alliance will optimize the use of resources and talents, and accelerate Lunda's advantage in the fast-growing LED lighting market.

Zhang Boyi, deputy general manager of Ronda Electric, said that the merger of Ronda and Power Alliance will play a comprehensive effect, which is of great significance for upgrading the output value of Ronda. At this stage, the output value of Londa is only behind that of Jingdian and Yiguang, and Ronda is packaging every month. There are 800 million production capacity and 200 million power alliances. After the merger, Ronda will have 1 billion packaging capacity in one month.

Major shareholder CLP: Benefit 1+1>2

Zhou Lizhen, chairman of CLP, said on the 13th that the future development of the merger of Power League and Ronda will be successful, and will form the benefits of "one plus one is greater than two."

She said that 21% of China Power's shareholding power alliance is the largest shareholder, but due to the large share capital of Ronda, CMC's shareholding in the future will not exceed 5%.

Zhou Lizhen emphasized that the integration of Power League and the upstream Ronda can avoid repeated investment, reduce procurement costs, and provide high-quality and competitive products to international customers.

CLP believes that in the past, Power League was mainly engaged in the production of CCFL, and its operation with Ronda was very small. However, the transformation to the LED factory has the advantage of integration with Lunda.

In the first half of the year, CLP's consolidated revenue was NT$3.540 billion, an annual increase of 7%, net profit after tax of 280 million yuan, and net profit after tax of 0.71 yuan per share. The profit was slightly lower than last year. The legal person believes that after the acquisition of LED lighting in the first half of the year, the revenue growth was higher than that of the same period of last year, but the net profit per share was declining. The main reason was the recognition loss from the transfer of the power alliance.

In this regard, CLP understands that after the merger with Powera, the profit-making effect can emerge, which will help CLP's non-profit income.

It is understood that after the merger of Power League, the new Ronda is still doing ODM and OEM, and will not expand the development brand. As for the LED lighting brand market, the future will rely on the resources of CLP to further promote Xinlong. Up to the shipment.

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