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HONG KONG, May 20, 2011 - (ACN Newswire) - Mascotte Holdings Limited ("Mascotte" or the "Company"; stock code 136.HK) has announced that it has distributed a circular ("Circular") to its shareholders regarding the Company's proposed acquisition ("Acquisition") of Sun Materials Technology Co., Ltd. ("Sun Materials"). The Acquisition will strengthen the Company's capability to become a leading polysilicon manufacturer due to proprietary patented technology, which, the Company believes, has the potential to radically re-shape the landscape of the solar industry.
The circular includes:
(1) Very Substantial Acquisition of Sun Materials;
(2) Increase in Authorized Share Capital;
(3) Placing of New Shares and Convertible Bonds;
(4) Appointment of a New Director;
(5) Grant of Facility to Sun Mass Energy Limited; and
(6) Notice of SGM
Sun Materials produces high quality solar grade polysilicon used in the solar energy production chain. Its technology significantly reduces production cost, manufacturing hazards and environmental effects compared to the traditional "Siemens" process commonly used by other suppliers.
The existing plant of Sun Materials is designed for a production capacity of up to 3,500 metric tons and will commence production by the end of May 2011. As of the date of the Circular, the first production line of Sun Materials is already operational. It plans to complete the construction of another 5 plants in Taiwan by the second quarter of 2012 to increase its production capacity to up to 21,000 metric tons in Taiwan and commence construction of an 18,000 metric ton plant in the PRC in the fourth quarter of 2011.
According to the Silicon Price Index published by Photon Consulting in May 2011, the spot price of polysilicon has increased from US$54/kg in May 2010 to US$76/kg in May 2011. The manufacturing cost of polysilicon by Sun Materials is estimated to be US$19.80/kg, as compared to the average of US$24-30/kg by the top industry incumbents using the traditional and modified "Siemens" processes and the FBR process. The lower cost of production reduces the procurement costs of polysilicon by downstream customers, which in turn is expected to deliver a product that can assist the solar industry to be revolutionized with a view to generating electricity at or below grid parity without the aid of subsidies.
Customers of Sun Materials include downstream manufacturers of wafers, ingots and photovoltaic cells in the international clean technology market. Sun Materials has already secured contracts with purchasers of its high purity polysilicon for all of its production output for 2011 as well as sales contracts with other domestic and international customers through to 2021.
"This opportunity will significantly accelerate our growth", commented Peter Whitelam, the chairman of Mascotte. "The technology that Sun Materials possesses has the potential to lower costs to such an extent that solar power will have the ability to proliferate and truly compete with traditional sources of energy. Low cost competitive technology coupled with volume production and secure off-take agreements present a very attractive proposition and Mascotte will be entering the solar energy market with a distinct advantage."
It is also proposed that Dr. Wu be appointed as director upon completion of the Acquisition. Dr. Wu is the chief executive officer and chief technical officer of Sun Materials. He is responsible for the day-to-day and overall management, strategic planning and development of Sun Materials. He possesses a degree from the National Taiwan University in chemical physics and a Ph.D in chemical physics from the California Institute of Technology ("Caltech"). He has also worked as a consultant at various organisations, including the National Aeronautics and Space Administration ("NASA") of the United States, IBM and San Diego Supercomputing Center.
A special general meeting ("SGM") of the shareholders of the Company will be held in Hong Kong at 30th Floor, China United Centre, 28 Marble Road, North Point, Hong Kong on 7th June 2011 at 9:00 a.m.
The Circular can be downloaded on the Hong Kong Stock Exchange website at http://www.hkexnews.hk/listedco/listconews/sehk/20110519/LTN20110519607.pdf.
Notes to Editors
On 19 January 2011, the Company announced that it will acquire a controlling 50.1% stake and a call option for the other 49.9% stake of Sun Materials, a Taiwan-based polysilicon manufacturer, with a consideration of US$150,000,000 (approximately HK$1,170,000,000).
The Company proposes a placing of shares and convertible bonds with a view to raising an aggregate amount of approximately HK$4.0 billion to fund the acquisition, the expansion plan and the capital expenditure for Sun Materials. The fundraising was upsized from the original plan of raising an aggregate amount of approximately HK$2.8 billion. Deutsche Bank is the financial adviser and placing agent for the Company.
About Sun Materials
Sun Materials is a limited liability company incorporated in Taiwan and its principal business is the manufacture of solar grade polysilicon. It developed a new and innovative technology and patented in the USA, Europe, Japan, Taiwan and China the key production reactor for such technology, with a view to significantly reduce the plant production costs, production hazards and adverse environmental effects of manufacturing solar grade polysilicon.
Contact:
Kreab Gavin Anderson
Shelldy Cheung
+852 2218 9966
scheung@kreabgavinanderson.com
Vianna Yau
+852 3753 6023
vyau@kreabgavinanderson.com
Topic: Merger & Acquisition
Source: Mascotte Holdings Limited
Sectors: Daily Finance
https://www.acnnewswire.com
From the Asia Corporate News Network
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