NEW YORK (TheStreet) -- Shares of SunEdison Semiconductor (SEMI) were jumping 39.55% to $11.56 on heavy trading volume early Thursday morning after Taiwan-based GlobalWafers agreed to acquire the company for $683 million, or $12 per share, including debt.
Over 9.34 million shares of SunEdison stock have traded so far today, higher than its 30-day daily average of 202,000 shares.
The two combined companies hold a 17% market share in the semiconductor industry, Bloomberg reports.
SunEdison, based in St. Peters, MO, will gain both clients and capacity in the deal.
The transaction has been backed by the boards of both companies and will be financed through existing cash and bank financing.
Following the announcement, shareholder rights firm Johnson & Weaver launched an investigation into whether the board members of SunEdison "breached their fiduciary duties" in the deal, according to a statement.
The firm is questioning whether SunEdison obtained the best price offer possible for the company's common stock.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D.
The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.
You can view the full analysis from the report here: SEMI