Summary
This Form 8-K filing by II-VI Incorporated (now Coherent Corp. under a different ticker symbol historically, but this filing is from 2007 for II-VI) announces a significant divestiture. The company has agreed to sell its entire equity stake in 5NPlus, Inc., a Canadian entity, as part of 5NPlus' initial public offering (IPO) and secondary offering on the Toronto Stock Exchange. This transaction is expected to close around December 20, 2007. The sale is poised to generate approximately $30 million in cash for II-VI, a substantial return compared to the carrying value of the investment. The carrying value of this stake was reported at roughly $3.6 million as of September 30, 2007. Consequently, II-VI anticipates recognizing a pre-tax gain of approximately $28 million from this divestiture, which will likely have a positive impact on the company's financial results for the current reporting period.
Key Highlights
- 1II-VI Incorporated is selling its entire equity ownership in 5NPlus, Inc.
- 2The sale is part of 5NPlus' initial public offering (IPO) and secondary offering in Canada.
- 35NPlus will be listed on the Toronto Stock Exchange.
- 4The transaction is expected to close on December 20, 2007.
- 5II-VI expects to receive approximately $30 million in cash (net of fees).
- 6The carrying value of the investment was approximately $3.6 million as of September 30, 2007.
- 7II-VI will recognize a pre-tax gain of approximately $28 million on the sale.