Why Investors Shoved Coherent Stock 5% Higher This Week
It isn't every day when a business receives $1 billion in financing for one of its operations. This happened to industrial company (NYSE: COHR) this week, and happy shareholders reacted by pushing the stock up in value. It rose by nearly 5% over the course of the week, according to data compiled by S&P Global Market Intelligence.
On Tuesday, Coherent divulged that a pair of Japanese industrial companies, Mitsubishi Electric (OTC: MIELY) and Denso, will together invest $1 billion into its silicon carbide operation. The investment will be divided 50/50 between the two and give them each a 12.5% stake in the business.
The news comes several months after Coherent announced it was conducting a strategic review of the silicon carbide unit. With the Mitsubishi/Denso deal, it will be spun off into a Coherent subsidiary to be controlled by its parent (which is to hold the remaining 75% stake). The unit will continue to be led by Coherent's Executive Vice President of New Ventures and Wide-Bandgap Electronics Technology, Sohail Khan.
Source Fool.com
