Vishay Sells Interest in LPSC to Lite-On JV
Vishay Intertechnology Inc. (Malvern, PA) announced that it has agreed to sell its 65-percent interest in Lite-On Power Semiconductor (LPSC, Taiwan) to Lite-On JV Corp. (Lite-On Group) for consideration consisting of cash and the assignment or transfer of stock appreciation rights in Vishay common stock held by the Lite-On Group.
The Lite-On Group currently owns the remaining 35-percent interest in LPSC. Valuing the stock appreciation rights based on the March 21, 2000, closing price of Vishay stock of $59, the accounting for the disposition of Vishay's interest in LPSC would have a minor downward effect on Vishay's earnings. During the time prior to closing, the parties will prepare additional documentation relating to the transaction, and the Lite-On Group will arrange its financing for the cash portion of the purchase price. The actual effect on earnings for the disposition will depend on the value of the Vishay stock at the time of the execution of the additional documentation. The closing is expected to occur before September 30, 2000.
Commenting on the agreement to dispose of the interest in LPSC, Felix Zandman, Vishay's chairman and CEO, said, "The disposition of our interest in LPSC makes sense for the company at this time. It will allow Vishay to focus its active component strategy on its Siliconix and Telefunken businesses, over which it has full control and which have been performing very well. The sale of LPSC should have a positive impact on Vishay's earnings going forward."