Picogiga faces collapse, Umicore may step in
As a result, the company is in negotiations with Umicore for a rescue package that would result in Umicore acquiring 40–47% of Picogiga s stock in return for a cash injection of around 5.5 million Euros. As of June 30, Picogiga s total indebtedness was in excess of 43 million Euros.
The deal is subject to approval the Picogiga annual meeting in mid-October. Trading in shares of Picogiga on the Paris exchange has been suspended.
According to a statement from Umicore, Picogiga offers a sound fit with Umicore Advanced Materials strategy to further grow its business and to seek opportunities in areas such as semiconductor wafers. In addition to extending the use of germanium to applications other than space solar cells, Umicore s strategy is to broaden its expertise in substrate technology by entering the market for the most advanced generation of wafers, as well as to develop downstream opportunities such as epitaxy.
Umicore says it is pursuing several initiatives to build a strong position in anticipation of a future market recovery, including the development of SiC and InP substrates.
