UPDATE 1-SunEdison to spin off semiconductor business in solar push
Aug 22 (Reuters) - SunEdison Inc said it would spin off its semiconductor business in an initial public offering and use the proceeds to fund its solar business.
The company's shares rose nearly 12 percent before the bell.
SunEdison said it plans to sell a minority stake in the newly formed SunEdison Semiconductor to the public in the offering, scheduled for early 2014.
The company, which changed its name from MEMC Electronic Materials Inc in May, has two businesses: semiconductor materials and solar energy.
The semiconductor materials business, which makes wafers used in chips for computers, mobile phones and cars, accounted for a third of second-quarter revenue of $401 million.
SunEdison earlier this month reported a wider-than-expected quarterly loss and said its semiconductor business would remain weak due to a slump in the wafer market.
A bulk of the company's revenue comes from its solar energy business, which designs, installs, finances and maintains solar power plants.
SunEdison expects to file a registration statement with the Securities and Exchange Commission in the third quarter of 2013, the company said on Thursday.
SunEdison shares were trading at $7.55 premarket on Wednesday.