In January 2014, Siltronic Holding International B.V. (NL), a 100-percent subsidiary of Siltronic AG, reached an agreement with Samsung Electronics Co. Ltd. to take over a majority stake in the Siltronic Samsung Wafer Pte. Ltd. joint venture. Prior to acquisition of the majority stake, Siltronic and Samsung Electronics each held 50 percent in the joint venture. Siltronic subscribed for new shares as part of a capital increase and now owns 78 percent of the company. Samsung’s stake will decrease to 22 percent as a result. At the same time, all of the joint venture’s outstanding project loans of some € 210 million were repaid. Siltronic is spending about € 150 million in total on this, which will increase the WACKER Group’s net financial debt in 2014.
The joint venture will subsequently be renamed Siltronic Silicon Wafer Pte. Ltd. Upon assumption of control in January 2014, Siltronic Silicon Wafer Pte. Ltd. will be fully consolidated in the WACKER Group. Full consolidation will improve Siltronic’s EBITDA in 2014.
Also in January 2014, Wacker Chemie AG restructured its contractual and delivery relationship with one of its solar-silicon customers. WACKER will continue supplying this customer with hyperpure polysilicon for solar cells, albeit under better conditions than before. Delivery volumes and prices were adjusted. Due to the new agreement, WACKER will recognize special income from advance payments retained and from damages received in its financial statements for the first quarter of 2014. WACKER’s first-quarter EBIT (earnings before interest and taxes) will increase by about € 115 million as a result.
There were no fundamental changes in our overall economic and business environment following the closing date of December 31, 2013.
The Group’s organizational and legal structures remained unchanged in the first few weeks of 2014.