News

30 June 2010

 

Emcore and TCIC pursue alternative means of cooperation to address regulatory concerns

On 24 June, Emcore Corp of Albuquerque, NM, USA, which makes components and subsystems for the broadband, fiber-optic, and solar power markets, and Tangshan Caofeidian Investment Corp (TCIC), a Chinese investment firm administered by Tangshan City’s Caofeidian Industry Zone in Hebei Province, withdrew their joint filing with the Committee on Foreign Investment in the United States (CFIUS). 

The withdrawal was made jointly in response to an indication from CFIUS that it has certain regulatory concerns about the transaction. Emcore and TCIC had previously made a joint voluntary filing with CFIUS in connection with their proposed transaction (agreed in February), whereby Emcore would sell a 60% stake in its Fiber Optics business (excluding its satellite communications and specialty photonics fiber-optics businesses) to TCIC for $27.75m in cash (subject to certain adjustments), forming a new joint venture, Emcore Fiber Optics Ltd (EFO), registered in Hong Kong .

In response to the indication from CFIUS, Emcore and TCIC say that they remain willing to explore alternative means of cooperation that would address regulatory concerns and meet the parties’ objectives. 

When Emcore and TCIC withdrew their joint application, the parties notified CFIUS that they would not go forward with the proposed transaction in the form originally presented to CFIUS. “While addressing any regulatory requirements, Emcore remains committed to seeking other means of cooperation that would meet the objectives of Emcore and TCIC,” says Emcore president & CEO Dr Hong Q. Hou. “We will continue to explore a broad strategy with TCIC, or with alternative partners, to meet the company’s objectives of: (1) creating a low-cost manufacturing base for its Fiber Optics business, (2) separating Emcore's Photovoltaics and Fiber Optics businesses to become pure plays in each of the business segments, and (3) providing Emcore with improved liquidity to launch its concentrator photovoltaics (CPV) business.”

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