Summary
Advanced Micro Devices, Inc. (AMD) announced on April 29, 2016, the completion of a significant transaction involving the sale of a majority stake in its China and Malaysia subsidiaries, AMD Technologies (China) Co., Ltd. and Advanced Micro Devices Export Sdn. Bhd. These entities have been transformed into two joint ventures (JVs) with affiliates of Nantong Fujitsu Microelectronics Co., Ltd. (NFME). This strategic move resulted in NFME's affiliates acquiring an 85% equity interest in each JV, while AMD retains a 15% stake. The transaction is valued at approximately $436 million, with AMD receiving net cash proceeds of roughly $320 million after taxes and expenses. This divestiture is intended to streamline AMD's business and generate capital, allowing the company to focus on its core operations.
Key Highlights
- 1AMD completed the sale of 85% equity interests in its China and Malaysia subsidiaries to NFME affiliates, forming two joint ventures.
- 2The transaction values the joint ventures at approximately $436 million.
- 3AMD received net cash proceeds of approximately $320 million after taxes and customary expenses.
- 4AMD retains a 15% ownership stake in each of the newly formed joint ventures.
- 5The sale was completed on April 29, 2016, pursuant to an Equity Interest Purchase Agreement dated October 15, 2015.
- 6AMD issued a press release and a document detailing the accounting treatment of the joint ventures as part of the disclosure.