October 7th, 2008 Posted in JVs, SWF
Liquid Abu Dhabi investors to chip-maker AMD’s rescue. The cost: $700M and $1.2B in assumed debt for Advanced Technology Investment Co. (ATIC) to acquire a sizable chunk in the JV (Foundry Co). ATIC is also said to have a deep pocketbook of between $3.6B-$6B for capacity expansion. Meanwhile, Mubadala boosts its equity stake in AMD to 19.3% from 8.1%. See clips of coverage by MarketWatch below.
| NEW YORK (MarketWatch) — Advanced Micro Devices Inc. said Tuesday it plans to spin off its manufacturing operations in the form of a multibillion-dollar joint venture with an Abu Dhabi investment firm. |
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AMD(AMD) said it will own 44.4% of Foundry Co., as the venture will be called. The remaining 55.6% would be own by Advanced Technology Investment Co., an investment company formed by the government of Abu Dhabi. |
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Under the deal, ATIC will pay $700 million to AMD for its ownership stake in Foundry Co., with the joint venture also assuming $1.2 billion of AMD’s debt. At the same time, Mubadala Development Co. will pay $314 million to AMD for 58 million newly issued shares and warrants to buy an additional 30 million |
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