Coherent (COHR) shares are jumping after Reuters’ Milana Vinn reported that the company has attracted interest from four Japanese conglomerates for an investment in its silicon carbide business at a valuation of as much as $5B. Denso (DNZOY), Hitachi (HTHIY), Mitsubishi Electric (MIELY) and Sumitomo Electric (SMTOY) have held talks about taking a minority stake in Coherent’s silicon carbide business, according to the the source, which said Coherent may accept more than one of these companies as investors in the silicon carbide division at a valuation of between $4B-$5B. The report, which cites a person familiar with the matter, said such an investment would alleviate the financial burden for Coherent as it plans to invest $1B over the next 10 years to expand its production of silicon carbide wafers used in electric vehicles. Following the report, shares of Coherent are up $3.17, or 11%, to $32.09.
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