Wacker “Examines Options” for Siltronic

Wacker Chemie has confirmed market rumors that it may spin off or float its semiconductor subsidiary Siltronic. The Munich-based company said management has submitted to the supervisory board "appropriate plans" for a separation of the wholly owned business.

The most favoured strategic option under consideration appears to be an initial public offering, whereby Wacker did not reveal whether it planned to sell all of its shares.

"Reshaping Siltronic's ownership structure could be beneficial for both Wacker and Siltronic," said Wacker CEO Rudolf Staudigl. With the income from a flotation, he said, the former parent company could free up funds to invest in its chemical and polysilicon operations.

Such a move also could reduce the overall capital intensity, the CEO added, while noting that Siltronic "could harness additional growth opportunities by accessing the capital markets itself."

"A further option, Wacker said, is a sale to a strategic investor. "A detailed analysis of all the possible courses of action is necessary first to see how far these goals are achievable and which path would then be appropriate," Staudigl said.