Taiwan Semiconductor Manufacturing Co. Ltd. (TSMC) and solar cell manufacturer Motech Industries Inc.have signed a share subscription agreement under which TSMC willsubscribe through a private placement for 75.32 million new Motechshares.
The total consideration is approximately NT$6.2 billion($193 million), or NT$82.7 per share, representing a 16.9% discount toMotech’s three-month average closing price. TSMC will become thelargest shareholder of Motech with 20% shareholding through thisinvestment. The transaction is subject to Motech’s shareholders’approval and regulatory approval.
"With the investment, TSMCintends to leverage Motech’s established platform to accelerate ourtime to market, better evaluate opportunities along the solar valuechain, and further formulate our overall solar strategy," states Dr.Rick Tsai, president of TSMC new businesses.