Abu Dhabi government buys into AMD
Mubadala investment vehicle takes 8% stake in chip maker AMD for $622 million
The Abu Dhabi government has taken an 8% stake in chip manufacturer AMD through its Mubadala investment arm.
The Mubadala Development Company purchased $622 million of new AMD shares, although AMD will only receive $608 million, with the other $14 million reimbursed to Mubadala.
AMD said in a statement that the funds will be used to boost investment in R&D, manufacturing and product innovations.
Hector Ruiz, chairman and CEO of AMD commented: "We proudly welcome Mubadala, a world-class investor, to the AMD shareholder family. This investment strengthens AMD's ability to deliver customer-centric innovation and choice to the marketplace, creating greater value for all of our shareholders."
Mubadala will not gain a seat on the AMD board for its investment. The company has been set up by the Abu Dhabi government to invest in high-performing companies and promising new ventures, and already has investments in the energy, heavy industry, telecommunications, infrastructure, and aerospace sectors.
Khaldoon Khalifa Al Mubarak CEO and Managing Directorof Mubadala, 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."
When asked about whether or not this deal might lead to AMD becoming Abu Dhabi and the Government’s CPU and GPU supplier of choice, Gautam Srivastava, vice president of sales and marketing and managing director at AMD for the Middle East, Africa and Pakistan said: “This is strictly an investment decision. This transaction is, in essence, a vote of confidence from an astute, long term investor. Mubadala has said they see significant opportunities for long-term growth and value creation in AMD. We see a lot of value in partnering with an investor of this quality. The additional capital will allow us to accelerate the achievement of our goals."