Aug 22, 2013 - US-based SunEdison Inc (NYSE:SUNE), former MEMC Electronic Materials Inc, said Thursday its board had okayed a plan to spin off and list its semiconductor business.
The company plans to sell to the public a minority stake in SunEdison Semiconductor Inc via an initial public offering (IPO) in the first months of 2014. SunEdison will use the proceeds to back its solar initiatives, pay back debt and for general corporate purposes.
The spin-off and listing, which depend on market conditions, are intended to better position both the solar and semiconductor businesses for “sustainable, long-term success” said SunEdison CEO Ahmad Chatila. “It is the right time for this transaction which we believe maximizes value to our investors while benefiting our customers and employees,” the company head added.
SunEdison intends to file a registration statement with the Securities and Exchange Commission (SEC) in the current quarter. It is yet to determine the amount of stock to be sold in the IPO. SunEdison Semiconductor will work as an independent company with a new board of directors.
The IPO is subject to customary conditions.
Earlier in August SunEdison reported a second-quarter 2013 net loss of USD 102.9 million (EUR 77m), widening from USD 77.2 million a year earlier. Revenues halved to USD 401.3 million from USD 808.4 million.
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