RF business to be spun off from Cree
The offering would enable Cree to focus on its LED and lighting businesses, while also creating a dedicated focus on the power and RF business. The company believes that this transaction should allow Cree shareholders to better realize the full value of both businesses.
The type and number of shares of stock to be sold and the price range for the proposed IPO has not yet been determined, although Cree intends to remain the majority stockholder of the subsidiary post offering. The IPO is expected to commence after the Securities and Exchange Commission completes its review process, subject to market and other conditions. The power and RF subsidiary is raising capital to invest directly in the business to support targeted future growth.
The company’s power and RF business accounted for less than 10% of Cree’s revenue, and is estimated to generate about $125 million in the current fiscal year.
www.cree.com
www.cree.com/RF
www.cree.com/Power
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