Chinese LED firm plans record investment in Taiwan

TAIPEI (AFP) - A leading Chinese maker of energy-saving light bulbs plans to invest Tw$2.35 billion (S$99 million) in a Taiwanese peer, in the biggest single investment from China, the companies and officials said on Tuesday.

Formosa Epitaxy, a supplier of LED (light emitting diodes) chips, said in a statement that it planned to sell up to 120 million new shares at Tw$19.6 per share to a subsidiary of China's Sanan Optoelectronics.

Sanan Optoelectronics, a maker of LED and solar energy products, will become the Taiwanese firm's largest shareholder with a 19.9 per cent stake after the deal is finalised.

The two firms were set to sign a share subscription agreement on Tuesday that will take effect after gaining approval from their respective shareholders, Formosa Epitaxy said.