Abu Dhabi poised to take 9% AMD stake – $700 Million
Abu Dhabi is set to take a 9 per cent stake in Advanced Micro Devices, the US chipmaker, in a deal that underlines the purchasing power of sovereign wealth funds across the globe. The acquisition will cost Mubadala Development about $700m, according to people close to the situation.
However, the move could attract the attention of the Committee on Foreign Investment in the US, which vets acquisitions by foreign investors. The committee is most worried about investments in technology and defence companies on national security grounds. AMD on Thursday night made a regulatory filing saying it might sell up to $700m in common stock and use the proceeds for reducing debt, increasing working capital, making acquisitions or for capital expenditure. It reported its consolidated debt was about $5.3bn at the end of September.
Comments are closed.