Summary
Applied Materials, Inc. (AMAT) has filed an 8-K report on March 29, 2021, to announce the termination of its Share Purchase Agreement with Kokusai Electric Corporation and KKR HKE Investment L.P. The termination, effective March 19, 2021, was a significant event for the company. While the acquisition has been called off, Applied Materials will incur a termination fee.
Key Highlights
- 1Termination of Share Purchase Agreement with Kokusai Electric Corporation and KKR HKE Investment L.P.
- 2The termination became effective on March 19, 2021.
- 3Applied Materials will pay a termination fee of $154 million to KKR.
- 4This filing is an announcement of a material event, as per Item 8.01 (Other Events).
- 5The press release detailing this event is attached as Exhibit 99.1.
Frequently Asked Questions
The 8-K filing does not provide specific reasons for the termination of the Share Purchase Agreement. It only states that the agreement has been terminated.
Applied Materials will pay a termination fee of $154 million. This represents a cash outflow and an expense for the company, which will impact its financial statements.
While not explicitly detailed in this 8-K, such agreements typically outline the terms and conditions for the acquisition of a company or a significant stake in a company. The termination means this acquisition will not proceed as planned.
The filing indicates a termination fee of $154 million is payable. The filing does not mention any other penalties or further liabilities arising from the termination.