SunEdison plans to separate its semiconductor business, which will have
an initial public offering and operate as an independent company with a new
board of directors.
The board of directors of O'Fallon, Mo.-based SunEdison, formerly known as MEMC Electronic Materials, unanimously approved the separation and plans to sell a minority ownership interest in the semiconductor business to the public, according to a statement the company released Thursday morning. The IPO will occur by early 2014.
Following the announcement, SunEdison's stock surged 19 percent in morning trading, to $8.10 a share, up from Wednesday's closing price of $6.81.
Sun Edison makes silicon wafers for the solar and semiconductor industries. The new company will be called SunEdison Semiconductor.
"Today's announcement represents the next evolution in our strategic plan to better position both our solar and semiconductor businesses for sustainable, long-term success," SunEdison's CEO Ahmad Chatila said in a statement. "This new structure will allow each independent company to pursue its shareholder value generating strategies, focus on key markets and customers, optimize capital structures, and enhance access to growth capital for each company in the years ahead."
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