Sumitomo to pocket Aviza assets in sale deal

TOKYO: Japan's Sumitomo Precision Products Co is likely to ink a deal with the beleagured and bankrupt semiconductor equipment supplier Aviza Technology Inc, with Aviza looking to sell certain assets to the Japanese major.

Sources said that the deal might most probably be struck for an amount of $15 million in cash and about $42.5 million worth of promissory notes.

According to the California-based Aviza, it has agreed to sell Sumitomo substantially all of its assets related to its system, service, parts, spares and upgrade businesses.

It is also being believed that the sale might even include products and technologies relating to atmospheric-pressure chemical vapor deposition, physical vapor deposition, chemical vapor deposition and plasma etch.

These apart, service, parts, spares and upgrade business for atomic layer deposition products and technologies mght also be involved in the sale.

Aviza has also clarified in the meantime that its headquarters and batch systems manufacturing facilities in Scotts Valley, where the company has formed its base will not be part of the sale agreement.

The California company has added that apart from the $15 million in cash, it will receive a recourse promissory note with an aggregate principal amount of $10 million that will mature 18 months after the closing date, as well as a non-recourse promissory note with an aggregate principal amount of approximately $31.5 million that will not bear interest and will also mature 18 months after the closing date.

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