Accelerating resource integration, Tangshi Lighting announced the acquisition of Grand Canyon

LED factory Tangshi Lighting and Grand Canyon announced on the 7th that Tangshi Lighting will acquire Grand Canyon to fully integrate resources and improve operating performance. Grand Canyon will become its wholly-owned subsidiary, and the benefits of the merger are expected to appear next year.

The board of directors of Tongshi Lighting has decided that after a comprehensive evaluation based on market price and market law, the merger and acquisition will be carried out in the form of stock exchange. It is expected that the ordinary shares of Grand Canyon will be exchanged for 1 ordinary share of Tongshi Lighting. Tongshi will acquire the number of outstanding shares of Grand Canyon at a discount of about 5%. The market price conversion of the merger and acquisition cost will be approximately NT$540 million. The base date for mergers and acquisitions and share conversion is tentatively scheduled to be October 31 this year, and it is expected to be incorporated into the financial statements in November.

Tangshi Lighting said that it is expected that the benefits of the merger will be fermented in the second half of next year. The company and Grand Canyon have been deeply involved in the lighting industry for many years. The company's lighting is well-known as an indoor lighting agent in Europe and has established a complete project sales channel in Taiwan. Grand Canyon has advantages in outdoor architectural landscape and municipal lighting in mainland China, and future cooperation will strengthen its competitive advantage.

Looking forward to this year, Grand Canyon said that demand in mainland China has shown signs of recovery in the near future, and it is expected to be cautiously optimistic about the outlook for the second quarter and the second half of the year.

Tongshi Lighting said that the Chinese mainland government is targeting economic recovery, and the government has recently been stimulating tourism activities to drive a recovery in nighttime economic activities, which is expected to revive demand for outdoor architectural landscapes in the Grand Canyon.

As for the business, Tongshi Lighting said that last year was affected by Europe and mainland China. As the prosperity of the two regions gradually recovered this year, there was still a time lag in demand to catch up, which led to an improvement in operations. It is expected that this year will be better than last year.