Westar to purchase solar cell company.Westar to purchase solar cell solar cell, semiconductor devised to convert light to electric current. It is a specially constructed diode, usually made of silicon crystal. When light strikes the exposed active surface, it knocks electrons loose from their sites in the crystal. company Applied Solar Energy solar energy, any form of energy radiated by the sun, including light, radio waves, and X rays, although the term usually refers to the visible light of the sun. Corp. of City of Industry recently announced it joined with its major shareholder, American Cyanamid Co., to accept a $23.5 million acquisition offer from Westar Capital. Applied Solar builds solar cells that convert sunlight to energy for the satellite industry, and photosensor devices and laser subassemblies for industrial, defense and consumer applications. The company has been in the red most years since it was founded in 1983. For the fiscal year ended Oct. 28, 1990, it lost $868,000 on net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight of $29.4 million, compared to a loss of $1.84 million on net sales of $21.7 million the previous year. Heavy capital demands for research and development, production difficulties and delayed payments from customers have marred financial performance. Under the proposed acquisition terms, the public shareholders of Applied Solar will receive $6 per share in cash and American Cyanamid, which owns 73 percent of the company, will receive the equivalent of $3.58 per share plus cash and notes in payment of outstanding intercompany loans. The company's stock jumped 50 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. to close at $5.50 on the day of the announcement. The agreement is still dependent on execution of a definitive agreement, a fairness opinion Fairness Opinion A report put together by qualified analysts or advisors providing to key decision makers an evaluation of and facts about a merger or acquisition. Notes: A fairness opinion serves as a document used for guidance in a merger, takeover, or acquisition. from Applied Solar's investment banker Investment Banker A person representing a financial institution that is in the business of raising capital for corporations and municipalities. Notes: An investment banker may not accept deposits or make commercial loans. and a number of other conditions, according to the company. Westar Capital is a Costa Mesa-based corporate investment firm which finances acquisitions of West Coast-based middle-market growth companies. Most of its capital comes from limited partner George Argyros, chairman of Brighton Homes, one of the largest home builders in Southern California. George Crandall, Westar general partner, said demand for solar cells, the company's main product, has remained constant for the last eight years "and we expect it to continue that way." |
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