Acer expands into energy storage with new investment

TAIPEI - Acer (TW:2353) Incorporated has announced its board’s approval for a significant investment in grid energy storage, marking a strategic move into the energy sector. The investment, which follows previous disclosures on December 26, 2023, and September 27, 2024, involves a capital increase in cash for the common shares of Yunyong Co., Ltd., among other companies.

The transaction includes an accumulated amount of NT$712,500,000 for shares of Yunyong Co., Ltd. at the par value of NT$10 per share. Acer’s investment in other energy storage companies was previously disclosed, with amounts including NT$461,580,000 for Jaoming Electric Co., Ltd., NT$585,765,600 for Haosheng Co., Ltd., NT$425,000,000 for Haoyu Electric Co., Ltd., and NT$403,572,400 for Haosheng No.3 Electric Co., Ltd.

This strategic investment reflects Acer’s commitment to participating in the energy storage industry, which is becoming increasingly important as the world shifts towards renewable energy sources.

The decision for this investment was made by the Company’s Investment Committee, Audit Committee, and Board resolution and authorization. However, the specific terms of delivery or payment, including payment period and restrictive covenants in the contract, are yet to be disclosed.

Following the completion of the cash injection, Acer is expected to hold 71,250,000 shares of Yunyong Co., Ltd., and varying amounts in the other four companies, contributing to a significant shareholding percentage in each.

The investment’s impact on Acer’s financial position is substantial, with the current ratio of securities investment to the total assets at 62.58% and to shareholder’s equity at 126.74%. The company’s operating capital is reported at NT$-8,770,613 thousands.

Acer’s board has reported no dissenting opinions regarding the transaction, and the counterparty is not a related party. Furthermore, there are no broker fees as none was involved, and the transaction does not involve a change in the business model.

The information in this article is based on a press release statement, providing insight into Acer’s latest strategic investment as the company diversifies its business portfolio into the energy sector.

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