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Wed 6 Feb 2019 11:26 AM

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Abu Dhabi's Mubadala sells AMD shares for reported $840m

Mubadala will also provide 75 million warrants into common equity shares

Abu Dhabi's Mubadala sells AMD shares for reported $840m

Abu Dhabi’s Mubadala has sold 34.9 million common equity shares in US microchip and semiconductor firm Advanced Micro Devices (AMD), the company announced on Tuesday.

According to a statement from Mubadala, the company also plans convert 75 million warrants into common equity shares which will provide AMD with $448.5 million.

The deal will leave Mubadala a 6.9 percent shareholder in the company once the warrants are converted

Although the sale price of the common equity shares was not disclosed, according to media reports it was approximately $842 million based on Monday’s closing prices.

“Today’s transaction remains in line with Mubadala’s overall investment strategy to monetise mature holdings to deliver attractive commercial returns,” a Mubadala spokesman said in a statement quoted by The National.

“We have had a long-standing relationship with AMD over the past decade and remain among the company’s top shareholders,” he said. “We are proud of our partnership with AMD and are confident in the management team’s ability to execute against their technology road map and deliver innovative products to the market.”

Mubadala – which is active in 13 sectors in over 30 countries – manages a portfolio of about $225 billion.

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