EMCORE Corporation (EMKR)

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9:46AM Emcore enters into an agreement to sell a majority interest in its fiber optics business resulting in the completion of its restructuring (EMKR) 1.05 +0.03 : Co entered into a share purchase agreement to create a joint venture with Tangshan Caofeidian Investment. Caofeidian Industry Zone is a fast developing area in the strategic Bohai Rim Economical Region with a total investment of $26.4 billion, and hosts a large number of corporations and enterprises, including China Capital Steel, Sinopec, and others. The agreement provides for TCIC to purchase 60% interest in EMCORE's Fiber Optics business (excluding its satellite communications and specialty photonics fiber optics product lines), which will be operated as a joint venture once the transaction is closed. The new joint venture entity will be named EMCORE Fiber Optics, Limited (EFO), and registered in Hong Kong. The agreement provides for TCIC to pay EMCORE ~$27.8 million in cash and provide an additional funding of $27 million to EFO after the closing. The Fiber Optics businesses included in this transaction are EMCORE's telecom, enterprise, cable TV, fiber-to-the-premises, and video transport product lines. EMCORE will retain the satellite communications and specialty photonics fiber optics product lines as well as the satellite and terrestrial solar businesses.