24 December 2014

SemiLEDs sells 15% stake to XiaoQing Environmental Protection Group's chairman for $5m

LED chip and component maker SemiLEDs Corp of Hsinchu, Taiwan has entered into a definitive common stock purchase agreement for XiaoQing Han, chairman & CEO of Beijing XiaoQing Environmental Protection Group, to acquire a 15% stake in the firm’s common stock at a purchase price of $1.00 per share (totalling $5m). Han will join the SemiLEDs’ board of directors upon closing of the transaction.

Founded in 2005, SemiLEDs’ manufactures proprietary white, blue, green and ultraviolet (UV) LED chips and components, mainly for general lighting applications, including street lights and commercial, industrial and residential lighting, as well as specialty industrial applications such as UV curing, medical/cosmetic, counterfeit detection, horticulture, architectural lighting and entertainment lighting.

Han is a veteran of China’s national environmental protection industry, having studied water supply and drainage at TsingHua University and Beijing University of Civil Engineering and Architecture and having spent the past 20 years focused on the water treatment sector. In 1988, he founded Beijing XiaoQing Environmental Protection Group, which contracts construction projects such as municipal water treatment, industrial wastewater treatment, garbage disposal, recycling, sludge treatment, sewage, and rural bio-gas. Customers span industries including pharmaceutical, chemical, industrial and consumer foods and products across more than 14 provinces and regions throughout China.

By aligning the interests of both SemiLEDs and Beijing XiaoQing Environmental Protection Group, both firms expect to benefit from operating synergies generated through the potential formation of several joint projects including utilizing LED technology into waste-water treatment plants as well as packaging LED luminaires in provinces and regions throughout China. What is claimed to be a unique combination of environmental protection and energy-saving technology is expected to generate significant growth opportunities for both companies in the years ahead.

“We expect the joint opportunities ahead will enable our two firms to grow our business units and revenue while satisfying both our customers and shareholders alike,” says SemiLEDs’ CEO Trung Doan.

Tags: SemiLEDs

Visit: www.semileds.com