AMD said that the spin-off of its manufacturing business and the role of investors Advanced Technology Investment Company (ATIC) Mubadala have been altered. Under the new terms, AMD will only own 34.2% of the fabs and ATIC the remaining 65.8%. In the original agreement, AMD would have owned 44.4% and ATIC 55.6%. The adjustment was caused by a reduction of the enterprise value of the manufacturing assets to be contributed by AMD – from 1.13x to 0.85x of the net book value of the assets.
The net asset valuation multiple on future capital calls of “The Foundry Company” will be also be reduced from 1.1x to 0.9x.
AMD noted that ATIC will still invest $2.1 billion to purchase its stake in “The Foundry Company”, of which it will invest $1.4 billion directly in the new entity and will pay $700 million to AMD.
Mubadala will purchase 58 million shares of AMD’s common stock at a revised purchase price. AMD said that it will issue to Mubadala an additional 5 million warrants to purchase AMD stock, for a total of 35 million warrants.
In related news, AMD announced that it secured about $27 million in tax incentives associated with the construction of its Luther Forest chip plant.