Emcore Sells 60 Percent Stake in Fiber Optics Business
Source/Type: Reported News

Author: CompoundSemi News Staff

February 3, 2010... Solar company, Emcore Corporation has agreed to sell the majority stake in its fiber optics business. Emcore entered into a share purchase agreement with Tangshan Caofeidian Investment Corporation (TCIC), a Chinese investment company. The investment from TCIC will form a joint venture in which TCIC will purchase 60 percent of Emcore's Fiber Optics business (excluding its satellite communications and specialty photonics fiber optics product lines).

The new joint venture entity will be called Emcore Fiber Optics, Limited (EFO), and registered in Hong Kong. Under the terms of the agreement, TCIC will pay Emcore approximately $27.8 million in cash and provide an additional funding of $27 million to EFO after the closing. The Fiber Optics businesses included in this transaction are Emcore's telecom, enterprise, cable TV (CATV), fiber-to-the-premises (FTTP), and video transport product lines. Emcore will retain the satellite communications and specialty photonics fiber optics product lines as well as the satellite and terrestrial solar businesses.

Emcore Chairman, Mr. Reuben F. Richards, Jr. will resign his position as executive chairman of and will assume the role of CEO for EFO. Also, Emcore's President and CEO, Dr. Hong Q. Hou, will also serve as a Director of EFO, providing strategic and operational oversight to the joint venture. TCIC nominated Dr. Yi Li as chairman of the board for EFO and will name a CFO to EFO after the closing. Emcore News Release

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