SunEdison is going to spin off its semiconductor business from its solar business.
The company’s board of directors has unanimously approved an initial public offering of its semiconductor business to create SunEdison Semiconductor.
Just a few weeks ago, Norway-based Renewable Energy Corporation (REC) announced it would divide the company into two entities, launching the silicon and solar divisions as independent, listed companies.
SunEdison plans to sell a minority ownership interest in the semiconductor business to the public and to use proceeds from the separation to fund initiatives related to the solar business to repay existing indebtedness and for general corporate purposes. The newly formed SunEdison Semiconductor will operate as an independent company with a new board of directors.
SunEdison expects to file a registration statement with the Securities and Exchange Commission in the third quarter of 2013, with the initial public offering scheduled by early 2014, subject to market conditions. A final decision regarding the amount of interest to be sold to the public at the time of the IPO will be determined by SunEdison’s board of directors at a date to be determined.