Case Study on the First Merger in Taiwan Solar Energy Industry
|關鍵字:||台灣首宗;太陽能產業;併購;First case in Taiwan;Solar Energy Industry;Merger|
From a renewable and sustainable future perspective, solar energy should be a widely adopted technology with high possibility amongst others to replaces nuclear energy. There exists many opportunities in the solar energy market. However, because the current production costs of solar energy sources have yet to reach grid parity costs, thus solar energy has been unable to effectively compete with traditional energy sources. Therefore, the solar industry requires continued support from national governments for renewable energy friendly policies as well as subsidies for continued operations. This case study focuses on the short term market and finance performance of a post merger surviving company, Neo Solar Power Corporation. Study results have shown that both the surviving company as well as the acquired company both enjoy short term success in financial markets as well as positive cumulative abnormal returns. Using financial indicators such as revenue growth, gross margin, operating expense ratio, operating margin, earnings per share and Neo Solar Power’s stock price performance, the study analyzes Neo Solar Power’s performance postmerger and concludes that Neo Solar Power benefited from significant synergies in terms of operating profits. Additionally, a key success factor for this transaction was Delta Electronics’ promise to support DelSolar and Neo Solar’s efforts in integrating their businesses and retaining the existing management team as well as supporting upcoming postmerger fundraising efforts, including a minimum injection of new funds to strengthen the new company’s financial structure thus achieving a win-win situation for all parties involved.