Cree To Invest $83 Mln In Lextar Electronics
(dpa-AFX International Compact Via Acquire Media NewsEdge) TAIPEI (dpa-AFX) - Cree, Inc. (CREE) announced an agreement to make an investment in Lextar Electronics Corp. and the companies will enter into a supply agreement for sapphire-based LED chips. Upon closing of the investment, Cree will own approximately 13 percent of Lextar.
Lextar, founded in 2008 in Taiwan, is a subsidiary of AU Optronics (AUO), a TFT-LCD and solar PV manufacturer.
As part of the agreement, Cree will invest approximately $83 million to purchase 83 million Lextar shares at a price of NT$30 per share. Lextar and Cree will also enter into a long-term LED chip supply agreement, as well as a royalty-bearing license agreement for certain Cree LED chip and component intellectual property.
Both companies' boards have approved the agreement and is targeted to close in Cree's second quarter of fiscal year 2015, subject to the approval of Lextar's shareholders and the Taiwan Investment Committee, and other customary closing conditions.
Copyright RTT News/dpa-AFX
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