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[August 2008]
Yageo Merges Compostar
Yageo Corporation of Taiwan has announced that it is to wholly merge its subsidiary Compostar Technology Co Ltd by purchasing the rest of the issued shares of 14.74% with NT$382 million in cash.This merger will be completed along with the procedures of Board of Directors and Interim Shareholder Meeting of Compostar as per Enterprise Mergers and Acquisitions Law. After the merger, Yageo will be the surviving company while Compostar will be the dissolved one.
Compostar has turned into one of the leading manufacturers among Hi-cap MLCC players through focusing on the development of Hi-cap MLCC as well as concentrating on the end markets of NB, motherboard, PC, white-box mobile and TFT-LCD. Currently its monthly capacity of Hi-cap MLCC has reached 1.2 billion pieces. This merger will benefit Yageo to grow rapidly in the MLCC market and achieve operational synergies through the integration of marketing, R&D and back office.
Yageo has been raising its stake in Compostar up to 85.26% of its total issued shares from February of 2005 up until now and will be purchasing the remaining issued shares with a net value of NT$12.52 per share. The consolidation date of the merger with Compostar is targeted for 31 October 2008.
ENDS