Taipei, November 20 – Today TECO Electric & Machinery Co., Ltd. and Walsin Lihwa convened a material information press conference at the Taiwan Stock Exchange Corporation, where they announced their resolution to form a strategic alliance through an equity swap to further strengthen their long-term partnership and integrate their individual strengths to enhance both companies’ competitiveness for the next-generation smart power grids, smart manufacturing, and new energy applications. The two companies will integrate their existing customer resources and share the synergy from the new cooperation to expedite business development based on a mutually beneficial principle.
Both companies announced a capital increment by issuing new shares for the equity swap. Walsin will float 205,332,690 new shares in exchange for 171,103,730 new shares of TECO at a ratio of 1:0.83. As a result, Walsin Lihwa will own approx. 8% stake in TECO, which in return will hold approx. 6% stake in Walsin Lihwa.
TECO prides itself on its solid professionalism in electrical engineering, and the company is one of the world’s top-five motor manufacturers also reputed for its green energy, energy management, and smart factory achievements. Walsin Lihwa — the power cable and wire industry leader in Taiwan with its deep roots in the basic material market — has been painstakingly developing smart power grid, solar power, and wind power applications and products over the past few years. The cooperation this time factoring in emerging industry trends and market commonality will further integrate both companies’ strengths to together exploit new industry opportunities based on a mutually beneficial principle.
With the longstanding relation, good mutual trust, long-term cooperation between Walsin Lihwa and TECO, this new round of cooperation aims developing synergy from both companies’ visions, and the strategic alliance is expected to bring in strong growth momentum to the two public companies and create long-term value for their shareholders.
Founded in 1956, TECO has diversified itself from a motor manufacturer into an extensive range of industries including heavy electric machinery, home appliances, information technology and communications, as well as dining and service with business presence in more than 40 countries. Becoming a constituent of the Dow Jones Sustainability Index in 2020, TECO strives to develop itself into a world-class brand based on its vision for energy conservation, emission reduction, intellectualization, and automation.
Walsin Lihwa Corporation, established in 1966, is not only the leading manufacturer of wire & cable, stainless steel, and commodity business in the Greater China region but also a leading real estate developer across the Taiwan Strait.