| USA Cree, a manufacture of SiC & GaN chip, acquired HK COTO Luminant Device, in order to make a preparation to enlarge Chinese market. This dealing was paid by cash and stock, totally 200million US dollars.
HK COTCO was established 10 years ago, does the business of sealed LED which are used for the large screens, traffic signals and lighting. COTCO was a client to Cree before. During last financial year, COTCO brought Cree about US$25,000,000 by purchasing chips. After the dealing, Cree will own the COTCO INT’L, COTCO Opto Technology and COTCO Japan. When the dealing succeeds, COTCO Holdings, the mother company of COTCO Opto, will get US$70,000,000 and over US$76,000,000 Cree cash paid for shares.. If COTCO can reach someone financial goal in the coming two years, it will finish another dealing which cost more than US$125,000,000.
Cree stated that this dealing will bring 15-20% increase per year, converted into cash about US$555,000,000-70,000,000. The CEO of Cree, Chuck Swoboda considered this dealing as next strategy of Cree, making it become true “solid lighting Innovation”. He said: “We expect to cooperate to broaden Chinese business, to transform Cree to be a real global company”. Therefore, COTCO Holdings will build another new Light Engine CO. LTD., in order to consolidate their old line- IC mould and screen components. Because Cree will own the brand of “COTCO”, thus the name of this mother company will be changed to be “United Luminous International (Holdings) Ltd”.
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