Updated. SunEdison, formerly MEMC, plans to spin-off and IPO its polysilicon and wafer operations that could net the company around US$250 million.
However, in an SEC filing, SunEdison revealed that its SunEdison Semiconductor Inc division that includes its polysilicon and wafer operations made a first-half year loss of US$21.4 million on net sales of US$471.3 million. Revenue for the full-year 2012 were US$927.4 million, down from US$1.05 billion in 2011.
In a separate SEC filing the same day, SunEdison said that its cancelled silicon tetrachloride (TCS) supply agreement with Evonik Industries for its shuttered semiconductor polysilicon plant in Italy will now result in a €7.68 million penalty charge to be paid to Evonik.
The IPO proceeds are expected to used for building PV power plants, while its SunEdison Semiconductor spin-off will use a range of banks for credit facilities.
“SunEdison will support SSI with poly supply and other transition agreements, as well as licensing of IP, which agreements are expected to be in place at the time of the IPO,” noted Ahmad Chatila, Chief Executive Officer & President of SunEdison in a conference call to discuss the SSI IPO.
“SSI financials will be consolidated in SunEdison results, and minority interest will be reflected on the consolidated financial statements. Shaker Sadasivam, a 25-year veteran of the Semiconductor industry, will be SSI's CEO. Key facilities will be allocated between the businesses, with sites such as Kuching, Portland and our polysilicon facilities in Texas and South Korea remaining with SunEdison and the semiconductor factories and our shuttered polysilicon facility in Merano, Italy allocated to SSI. SunEdison will retain FBR and solar wafering technologies and will license CCZ and diamond wire to SSI for semiconductor use. SSI will continue to have tremendous semiconductor IP in crystalline wafering and materials, including FP and SOI.”
The company also said in the conference call that its PV project pipeline remained strong, guiding that from the third quarter of 2013 through the third quarter if 2014, it expected to deliver over 1.1GW of installations, which nearly 60% was supported by projects currently in its backlog of 2.9GW.
SunEdison also noted that in the third quarter, it expected total project completions to be between 75MW – 105MW.
For the full year 2013, Semiconductor Materials revenues were guided to in the range of US$920 million to US$960 million, down from the US$940 million to US$980 million.
Full-year 2013 PV project sales guidance remained unchanged at 430MW to 500MW.
The company is guiding nearly an 80% increase in its project business in 2014 with plans to sell between 750MW to 900MW of projects.