AMD: Fab spin-off will be complete by March 2

At a meeting in Austin, Texas earlier today, stockholders gave AMD the final go-ahead on its chip manufacturing business spin-off deal. AMD now says the transaction is on track to close by March 2.

To be specific, stockholders voted on whether AMD could issue 58 million of its shares (plus warrants to purchase another 35 million shares) to the Mubadala Development Company of Abu Dhabi—a key part of the spin-off process. AMD stockholders approved the move by a margin of 94.5% to 5.5%. In case you’re wondering, 58 million shares works out to roughly $135 million at AMD’s current stock price of $2.33, although the final sum will be based on an average of past stock prices over a 20-day period.

The spin-off agreement will also see AMD receive $700 million from Abu Dhabi’s Advanced Technology Investment Company. As part of the latest, renegotiated terms, however, AMD will only get a 34% stake in the spun-off foundry business (but with equal voting rights).

That all leaves the name—”The Foundry Company” is still a temporary moniker. While discussing the business’ process technology roadmap last year, AMD said The Foundry Company will receive its “permanent corporate name and identity” once the transaction closes.

Comments closed
    • Game_boy
    • 11 years ago

    The stock price keeps falling…

      • ssidbroadcast
      • 11 years ago

      So far, the floor *seems* to be $2.00, where it has lingered in that range since last November.

        • ludi
        • 11 years ago

        Three shares of AMD for an Extra Value Meal!

        • SubSeven
        • 11 years ago

        It has fallen below $2 several times since Novemeber. In January and in December the stock has fallen below and/or closed below 2 multiple times. In November, there was roughly a whole week when the stock traded & closed below $2 while hitting a multi-year low of 1.62 on the 21st of Nov.

          • ssidbroadcast
          • 11 years ago

          Yes, this much is true, but it never spends much time below $2–maybe a day no more, perhaps because the threshold of bargain-hunters keep it above that mark.

    • kvndoom
    • 11 years ago

    I’m all for -[

    • khands
    • 11 years ago

    Good to see it’s actually getting some where, pretty fast too, although I wish AMD had managed to keep a 50% stake in the new company.

      • willyolio
      • 11 years ago

      i doubt they would have received that kind of cash AND keep that much of the new company.

      at least they’re still being allowed to control it, despite the 34% stake.

      • ludi
      • 11 years ago

      It’s all the same. As a half owner with equal voting rights, AMD would have been entitled to half profits on their ownership share. Instead, they’re going to get 1/3 profits, an immediate $700M infusion, and equal voting rights. They need the fast money right now, and with world financial markets being what they are, Dubai is probably their only prospect.

        • UberGerbil
        • 11 years ago

        Abu Dhabi. Not Dubai. You knew that of course. They’re easy to confuse, since they’re both part of the UAE, but it’s worth noting they really are different Emirates run by different families and with quite different sources of wealth (and even somewhat different commercial cultures). It’s kind of like the state of New York (which recently gave AMD some tax breaks to build a fab) and the state of California (which did long ago)

          • Xylker
          • 11 years ago

          UberGerbil, you really are über.

          I always enjoy reading your posts. They are germane, insightful and often humorous; unlike this one where I express my man-crush for you…

            • SHOES
            • 11 years ago

            Im with Xylker on this one you are the only reason I read all of these comments Uber. Any chance you could make it to the BBQ in MI this year?? It would be pretty awesome to actually meet you in person.

          • ludi
          • 11 years ago

          “The more you know…”

          Actually, I haven’t been paying close attention to Middle East geography in quite some time, so I’m doubtless getting sloppy.

Pin It on Pinterest

Share This