SUNNYVALE, Calif., 20 November 2007 — AMD announced on Friday that it received an investment from a wholly-owned subsidiary of Mubadala Development Company, a strategic investment and development company headquartered in Abu Dhabi.
Mubadala invested approximately $622 million, receiving 49 million newly-issued shares at a price per share of $12.70, the closing price of AMD common stock on Nov. 15. AMD received approximately $608 million, after reimbursing Mubadala for approximately $14.6 million in expenses. AMD will use the net proceeds from the sale of the shares of common stock for general corporate purposes including accelerating its long-term, customer-focused growth strategy by investing in R&D, product innovations and manufacturing excellence.
Mubadala CEO and Managing Director Khaldoon Khalifa Al-Mubarak said: “AMD is a great fit for Mubadala’s investment approach — a spirited competitor and innovator led by a strong and visionary management team. We see significant opportunities for long-term growth and value creation.”
The financial transaction was a non-controlling, minority investment. Mubadala will not receive any board representation as part of the deal. The transaction does not present a controlling investment or acquisition subject to review by the Committee on Foreign Investment in the US (CFIUS).
Mubadala’s investment will enable AMD to compete in a more aggressive manner against Intel, as AMD plans to use the injection of funds to pay for by investing in R&D focused on future chip architectures. The investment may also help level the playing field in the Middle East where Intel has cut Arab nations out of its manufacturing and most investment activities, while setting up major operations and investments in Israel.