Diodes Inc. in Chatsworth agreed to sell a 20% stake in the company to another maker of semiconductor devices, Microsemi Corp., for $2 a share, or $1.6 million.
The stock to be purchased by Microsemi, headquartered in Santa Ana, is part of a 2 million-share private placement Diodes is proposing to raise cash for expansion. About half the stock would be sold to Diodes management and employees and the balance would be sold to other outside investors.
Diodes would have about 4.2 million common shares outstanding after the proposed sale, of which 800,000 would be owned by Microsemi. The sale is subject to approval by Diodes' stockholders at their annual meeting Sept. 30.
Separately, Diodes reported a $631,901 loss for its fiscal year ended April 30, compared with a $415,659 loss the previous year. Annual sales rose to $12.3 million from $11.1 million.