Crystalwise Technology Inc. and Sino Sapphire Co., Ltd., the subsidiary of Sino American Silicon Products Inc. (SAS), approved to merge by Board of Directors on April 25, 2012 so as to integrate technology and resources of both parties, improve operating performance and strengthen overall competitiveness. The tentative share swap ratio is 1.8967 (Sino Sapphire one common share to Crystalwise 1.8967 common share ). The consolidated paid-in capital is around NTD 1.68 billion. While the merger is still waiting for approval of authority and Annual Shareholders Meeting of both parties, the company surviving the merger is named as Crystalwise Technology Inc. Merger closing date tentatively scheduled on Dec 31, 2012. After the merger, SAS is expected be the biggest legal person shareholder, possessing about 43% shareholding of new Crystalwise.

Being the first GTSM listed sapphire substrate manufacturer, Crystalwise carries 2″~6″ single and double side polished wafers, 2″ and 4″patterned sapphire wafer and 4″ LiTaO3 wafer. Sino Sapphire was carved out from SAS sapphire business unit on Oct, 1, 2011, with over 90 % of shipment focusing on high-value patterned sapphire substrate. The merger excels productivity over competitors, with the expansion, new Crystalwise is projected to achieve 0.8 million and 0.51 million in flat and hight-value patterned sapphire substrates by 2012 end, occupying the largest amount in capacity and market share.

The merger not only improves industrial integration and synthesis, but also reduces procurement and production costs. With the aforementioned advantages, it’s believed that new Crystalwise will surpass most rivals and expand participation. With RD superiority in crystal growth and high-lighting sapphire substrates of both sides, strengthening patterned and large-size sapphire substrates, new Crystalwise will build a barrier that other competitors are hard to overcome.

While LED application and energy efficiency are leading the trend, Crystalwise and Sino Sapphire will synthesize technology, talents, market and capacity in order to provide better products and service. Overall, new Crystalwise will elevate its competitiveness and market share in order to create greater profits for shareholders and employees.

Mega Securities Co., Ltd. is financial consultant of the merger.