Global Sources
EE Times-India
Stay in touch with EE Times India
EE Times-India > Embedded

Abu Dhabi invests Rs.2,460 crore ($622 million) in AMD

Posted: 20 Nov 2007     Print Version  Bookmark and Share

Keywords:investment  Abu Dhabi government  AMD stocks 

Advanced Micro Devices last week said it has received Rs.2,404.63 crore ($608 million) from the investment arm of the Abu Dhabi government, making the Persian Gulf emirate one of the chipmaker's biggest shareholders.

The investment, however, doesn't get Mubadala Development board representation or a controlling interest in AMD, the company said. It also isn't subject to review by the U.S. Committee of Foreign Investment.

Under the deal, Mubadala bought 4.9 crore newly issued shares of AMD stock for Rs.502.28 ($12.70) a share, the Nov. 15 closing price of AMD common stock. The investment, which amounts to an 8.1-per cent stake in AMD, is valued at Rs.2,460 crore ($622 million), but AMD received only Rs.2,404.63 crore ($608 million). The remainder went back to Mubadala as reimbursement for expenses.

AMD plans to use the money for R&D, product innovation and manufacturing improvements. "This investment strengthens AMD's ability to deliver customer-centric innovation and choice to the marketplace, creating greater value for all of our shareholders," Hector Ruiz, AMD chair and CEO, said in a statement.

AMD has suffered significant losses in recent quarters in battling stiff competition from Intel. AMD last month reported a Q3 loss of Rs.1,566.17 crore ($396 million) due to rising costs from a year ago. AMD's Q3 market share in terms of shipments, however, rose 0.4 per cent over the previous quarter to 23.5 per cent, while Intel's dipped by an equal amount to 76.3 per cent, an indication that the rivals fought to a standstill during the three-month period, according to IDC.

Mubadala has recently made other investments that reflect a growing foothold in the high-tech industry. Those investments include a deal with Northrop Grumman to collaborate on high-tech aerospace and aviation training programs, and a 7.5-per cent stake in the Carlyle Group, a private equity firm that invests in aerospace, defense and the high-tech industries, The Wall Street Journal reported.

- Antone Gonsalves

Comment on "Abu Dhabi invests Rs.2,460 crore ($6..."
*  You can enter [0] more charecters.
*Verify code:


Visit Asia Webinars to learn about the latest in technology and get practical design tips.


Go to top             Connect on Facebook      Follow us on Twitter      Follow us on Orkut

Back to Top