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AMD lowers share in The Foundry Company

08 December 2008 | By Mark Osborne | News > Fab Management

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AMD the Advanced Technology Investment Company (ATIC)  and Mubadala Development Company have changed certain aspects of the agreement made in October, 2008 that will see AMD’s share in The Foundry Company reduced to 34.2%, compared to the original 44.4% share holding. ATIC originally owned 55.6% holding but will now own 65.8% of the new foundry. The transactions covered by the amended agreements are expected to close at the beginning of 2009.

Changes have also been made to the value of the manufacturing assets AMD is contributing, which have been reduced from a multiplier of 1.13x to 0.85x of the net book value of the assets.  The net asset valuation multiple on future capital calls of the foundry will be reduced from 1.1x to 0.9x.

Mubadala’s purchase of 58 million shares of AMD’s common stock will see the price lowered. AMD will also issue Mubadala an extra 5 million warrants to purchase AMD stock, for a total of 35 million warrants.

Original investment terms agreed with ATIC in regards to The Foundry Company were said to unchanged.

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