Crystal power of stock repurchases to prevent loss of chips

In the past two years, LED panel, DRAM and electronic manufacturing (EMS) and other competing in the Dachang industry, the impact of the 2008 price reductions to by Nichia and white brand mobile phone demand fell, LED stock price greatly reduced the correction, intends to invest in the threshold, with little more equity LED practitioners that has become the primary goal of industry mergers and acquisitions. In order to prevent mergers and acquisitions, many companies have to repurchase the stock in order to prevent the inflow of certain people in the hands of chips.

In the third largest in the world, China's Taiwan region's largest LED epitaxial crystal power plant as an example, have a MOCVD machine 171, if a technology factory to develop into such economies of scale, at least to invest NT $20 billion or more, but the crystal November 14, 2008 total market capitalization is only 17 billion 700 million yuan NT, plus EPISTAR with up to more than and 800 patents, and the years of accumulated customer relationship, currently in more than 35 yuan per share net worth NT cash account, there are 7 billion 500 million yuan NT, forcing the crystal electric since recently performed for the first time the establishment of treasury stock, in order to prevent people M & A. High barriers to entry upstream of the LED extension, the CMO canyuan shares, Datong group by way of private placement made canyuan 7.13% stake, the cost is 14.5 yuan NT, canyuan now fell to 10.5 yuan NT, far less than the cost of CMO and Datong, Datong group also plans to increase to 10% in stock at the beginning of 2009.

Source: LEDinside