EPISTAR Corporation (TSEC:2448) agreed to acquire Lextar Electronics Corporation (TSEC:3698) for TWD 10.8 billion on June 18, 2020. Under the terms of transaction, Epistar and Lextar Electronics will jointly establish a holding company “ENNOSTAR Inc.” via share conversion. The share conversion ratios of the two companies are tentatively set at one share of Epistar for 0.5 ordinary share of ENNOSTAR and one share of Lextar for 0.275 ordinary share of ENNOSTAR.

Each of Epistar and Lextar will have two representatives sitting in the Committee to handle daily operations of holding company. Epistar and Lextar would then delist from the Taiwan Stock Exchange, and the new holding company would list on the main exchange. The acquisition is subject to customary closing conditions, including shareholder approval of EPISTAR and Lextar, approval from anti-trust authorities in Taiwan and China.

Transaction was approved in the board of directors' of Epistar and Lextar respectively on June 18, 2020. On August 7, 2020, shareholders of EPISTAR approved the acquisition. On September 12, 2020, Taiwan's Fair Trade Commission (FTC) approved the transaction.

On September 18, 2020, the listing date of the shares of ENNOSTAR Inc. was tentatively set on October 20, 2020, as well as the delisting date of the EPISTAR and LEXTAR was approved by Taiwan Stock Exchange on September 8, 2020. The review procedures of the Chinese antitrust authorities to EPISTAR and LEXTAR have not yet been completed, both chairman of the companies jointly negotiated to set the tentative date of share conversion to January 6, 2021. Ernst & Young Global Shared Services acted as financial advisor and due diligence provider for Lextar Electronics.