Is Sunedison Inc (NYSE:SUNE) Diversification Good?
Last week, Sunedison Inc (NYSE:SUNE) announced the closing of the offer of 30M common-shares at a $7.25 offer price. The underwriters have the opportunity to buy 4.5M shares. Sunedison Inc (NYSE:SUNE) announced that the proceeds of this transaction will be re-diverted into its expansion plans and operations.
In Wednesday’s trading session, Sunedison Inc (NYSE:SUNE) stock rose by 4.08%. The shares opened at a price of $7.97, climbed to an intraday high of $8.52 and headed to a close of $8.16. Approximately 10.57 million shares were traded on Wednesday and an average volume of 6.80 million shares were traded over a period of 30 days. The 52-week low of the shares was $2.15 and the 52-week high was $10.47. The company has a market capitalization of $1.89 billion.
On 9 September, Sunedison Inc (NYSE:SUNE) had announced that it intended to sell a segment of its stake in the subsidiary that had been formed recently. This subsidiary was focused on the semiconductor business. The company is expecting to offer this Initial Public Offering in 2014 March and projects that it will garner around $250M from it. The company has also announced that it has completed its supply-agreement with Evonik Industries for the procurement of silicon tetra-chloride. Sunedison Inc (NYSE:SUNE) will have to pay the latter 7.6M Euros as the contract is being terminated before the scheduled date.
Sunedison Inc (NYSE:SUNE) was previously MEMC Electronic Materials. It is involved in developing, manufacturing and selling silicon wafers. It develops and sells PV energy solutions. Via Solar Materials and Solar Energy it develops solar-energy projects. It operates in 2 segments: semi-conductor materials and solar-energy. Sunedison Inc (NYSE:SUNE)’s Solar Energy segment is inclusive of operations of the company’s old Solar Materials section and the SunEdison business. It offers wafers that have a variety of features in the semiconductors business.