CREE was also a major holder of CLRK:
bizjournals.com
Cree to cash in on sale of Boston company
Tuesday June 19, 10:08 am ET
Durham lighting concern Cree will be rolling in the dough under terms of a deal announced Tuesday.
Boston lighting company Color Kinetics said Tuesday that it's agreed to be bought by Dutch firm Royal Philips Electronics for $791 million. The cash deal, worth $34 per share, will be a major windfall for Cree, which as of April owned 4 percent of Color
Based on the terms of the deal, Cree (Nasdaq: CREE) will snag $29.4 million for its 864,365 remaining shares of Color Kinetics. Added to the $24 million the company has already made from sales of Color Kinetics stock, Cree will have grossed $53.4 million from its initial $12.7 million investment in the company.
That's a return of 320 percent.
Philips' $34-per-share offer is a 14 percent premium over the $29.79 Monday close of Color Kinetics (Nasdaq: CLRK). It comes after Color Kinetics stock has nearly doubled in the last year - the main reason Cree has made so much on its investment.
Shares of Philips (NYSE: PHG) moved only slightly in pre-market trading. Color Kinetics jumped 12.7 percent to $33.58, and Cree went up 3.8 percent to $25.87.
Published June 19, 2007 by the Triangle Business Journal
