* Files for an IPO of up to $250 mln for semiconductor
* Cuts revenue forecast for semiconductor business
* Shares fall 5 pct
* Expects to sell 750-900 megawatts of solar energy systems
Sept 9 SunEdison Inc cut the full-year
revenue outlook for its semiconductor business amid weak demand
and said it plans to spin off the unit in a $250 million initial
public offering to focus on the high-margin solar power
Shares of the company fell as much as 5 percent as SunEdison
trimmed its 2013 sales forecast for the semiconductor business
by $20 million to $920-$960 million, the second time it has done
so. The unit had $917.5 million in revenue in 2012.
The company, which was formerly known as MEMC Electronic
Materials, follows other solar companies such as SunPower Corp
and First Solar Inc in shifting its focus to
developing solar farms as panel prices remain weak.
In a conference call with analysts, SunEdison officials said
the company has not made a decision to completely exit the
business, but the divestment of a minority stake was a first
RBC Capital Markets analyst Mahesh Sanganeria said keeping
the two businesses separate would help with valuations. "There
is not much synergy between solar and semiconductor business."
The business, which makes wafers used in chips for
computers, mobile phones and cars, had revenue of $239 million
in the second quarter, or about 60 percent of the company's
The unit, called SunEdison Semiconductor Inc (SSI), will be
headed by Shaker Sadasivam, SunEdison's executive vice president
in charge of the semiconductor business.
SunEdison's chief financial officer Brian Wuebbels will also
be on SSI board.
SunEdison also said it now expects to sell 750-900 megawatts
of solar energy systems in 2014, a number that came above above
The IPO, scheduled for early 2014, will have Deutsche Bank
Securities and Goldman Sachs as lead underwriters, SunEdison
told the U.S Securities and Exchange Commission in a preliminary
The filing did not reveal how many shares the company
planned to sell or their expected price.
SunEdison Semiconductor intends to list its common stock
under the symbol "WFR". The company did not disclose which
exchange it would list its stock on.
The amount of money a company says it plans to raise in its
first IPO filings is used to calculate registration fees. The
final size of the IPO could be different.