EMCORE Corporation (NASDAQ: EMKR), aleading provider of compound semiconductor-based components, subsystems andsystems for the fiber optic and solar power markets, announced today it hasentered into a share purchase agreement to create a joint venture withTangshan Caofeidian Investment Corporation (TCIC), a Chinese investmentcompany located in Caofeidian Industry Zone, Tangshan City, Hebei Provinceof China. Caofeidian Industry Zone is a fast developing area in thestrategic Bohai Rim Economical Region with a total investment of US$ 26.4billion, and hosts a large number of corporations and enterprises,including China Capital Steel, Sinopec, and others.
Chanel Replica HandbagsThe agreement provides for TCIC to purchase a sixty percent (60%) interestin EMCORE's Fiber Optics business (excluding its satellite communicationsand specialty photonics fiber optics product lines), which will be operatedas a joint venture once the transaction is closed. The new joint ventureentity will be named EMCORE Fiber Optics, Limited (EFO), and registered inHong Kong. The agreement provides for TCIC to pay EMCORE approximately$27.8 million in cash and provide an additional funding of $27 million toEFO after the closing.
The Fiber Optics businesses included in this transaction are EMCORE'stelecom, enterprise, cable TV (CATV), fiber-to-the-premises (FTTP), andvideo transport product lines. EMCORE will retain the satellitecommunications and specialty photonics fiber optics product lines as wellas the satellite and terrestrial solar businesses.
Under the terms of the agreement, EMCORE's Executive Chairman and Chairmanof the Board, Mr. Reuben F. Richards, Jr. will resign his position asExecutive Chairman of EMCORE and will assume the role of CEO for EFO. Inaddition, certain other EMCORE senior executives and the employeescurrently working for the transferred product lines will be offeredpositions with EFO. EMCORE's President and CEO, Dr. Hong Q. Hou, will alsoserve as a Director of EFO, providing strategic and operational oversightto the joint venture.
Tangshan Caofeidian Investment Corporation nominated Dr. Yi Li as Chairmanof the Board for EFO and TCIC will name a CFO to EFO subsequent to theclosing.
Over the next several years, the joint venture will focus on developing ahigh volume, low cost manufacturing infrastructure and a local customersupport organization to better serve the expanding customer base in Chinaand worldwide. Furthermore, TCIC has committed to providing additionalfunding support for the JV's future strategic growth through acquisitions.
"This is one of the most transformational transactions in the history ofEMCORE," stated Dr. Hong Hou. "This transaction creates two wellcapitalized, industry-leading companies within their respective industriesand will enable EMCORE to focus on growing its photovoltaic anddefense/homeland security businesses. This strategy was put into motionmore than two years ago by our Board of Directors. We are very pleased tobe entering into this joint venture with TCIC and look forward tocontinuing to expand our Fiber Optics business and creating value for ourshareholders."
"EMCORE's advanced technology, broad product portfolio, and high-qualitycustomer base are very fake rolex impressive. TCIC plans to provide a competitivefulfillment infrastructure and expand the JV's customer penetration in Asiaby strengthening the China operation." Mr. Wenhong Tang, Vice Mayor ofTangshan City, further commented, "EMCORE's Fiber Optics business is agreat platform for future postcard printing growth through accelerated new productdevelopment. We are commit
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