Serenity: OE Solutions is suitable as an acquisition target for a large downstream enterprise, possessing a rare laser IP.

BlockBeats News, June 23rd, Serenity expressed its view that South Korean optical communication company OE Solutions (138080.KQ) is the most suitable acquisition target for a large downstream enterprise. OE Solutions currently has a market value of approximately $215 million and owns a scarce EML/CW laser IP. From a vertical integration perspective, an acquisition similar to Source Photonics or Suzhou Dongshan Precision could bring more value to companies looking to integrate upstream.

Serenity also stated that OE Solutions, as a small optical communication company, would require substantial expensive R&D investment and capital expenditure to expand its wafer fab capacity and promote development in the future. Therefore, being acquired by a large downstream enterprise may be more reasonable. Serenity disclosed its related holdings and mentioned that this view is only a proposal to other companies.