News Article
CFIUS concerns lead EMCORE & TCIC to withdraw joint filing
EMCORE and Tangshan Caofeidian Investment Corporation ("TCIC") Pursue Alternative Means of Cooperation to Address Regulatory Concerns
EMCORE Corporation, a provider of compound semiconductor-based components, subsystems and systems for the fiber optics and solar power markets, announced that on June 24, 2010, EMCORE and TCIC 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 as it is currently proposed. EMCORE and TCIC had previously made a joint voluntary filing with CFIUS in connection with their proposed transaction, whereby the Company would sell a sixty percent (60%) interest in its Fiber Optics business (excluding its satellite communications and specialty photonics fiber optics businesses) to TCIC in exchange for $27.75 million in cash, subject to certain adjustments.
In response to the indication from CFIUS, EMCORE and TCIC remain willing to explore alternative means of cooperation that would address regulatory concerns and meet the parties' objectives.
At the time that 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. 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," said EMCORE President and Chief Executive Officer, Dr. Hong Q. Hou.
