Dow Corning acquires outstanding Hemlock shares
Dow Corning has announced that it will invest about $240 million to increase its ownership interest in Hemlock Semiconductor, LLC and Hemlock Semiconductor Corp. by purchasing Mitsubishi Materials Corp.'s 12.25 percent share of ownership in each entity.
Dow Corning now owns 100 percent of Hemlock Semiconductor, LLC and 80.5 percent of Hemlock Semiconductor Corp.
The acquisition enables Dow Corning to generate additional earnings and cash-flow through greater ownership in the companies, which manufacture polysilicon, a key raw material used in the production of semiconductor devices and solar cells, Dow Corning said.
"Dow Corning founded Hemlock Semiconductor more than 50 years ago with the foresight that polysilicon technology would be a revolutionary material in the electronics and energy industries," Dow Corning Chairman, CEO and President Robert D. Hansen said. "Hemlock Semiconductor is an important and strategic contributor to Dow Corning's financial performance, with an industry leading team, technology and strategy that have enabled the company to remain strong despite the volatility in the polysilicon industry."
Dow Corning has also agreed to purchase up to the entirety of Mitsubishi Materials Corp.'s 12.25 percent ownership interest in Hemlock Semiconductor PTE. Ltd. in the coming weeks. Shin-Etsu Handotai Co., Ltd. remains the minority shareholder of Hemlock Semiconductor Corp. and Hemlock Semiconductor PTE. Ltd.
