AMD spin-off plan approved by shareholders
Just over 50% of shareholders voted on the landmark Abu Dhabi deal
Advanced Micro Devices shareholders have approved a joint venture with technology investment firm Advanced Technology Investment Company (ATIC), owned by the government of Abu Dhabi.
The news comes a week after AMD failed to get a majority of voters needed to rule on the decision. At the time, only 42% of the company’s shareholders voted, of which 97% were in favour of the deal.
On Wednesday, AMD reported that just over 50% of shareholders voted in the landmark meeting, with 94% supporting the joint venture known as ‘The Foundry Company’. Both companies now expect to close the deal by March 2nd.
The Foundry Company will be headquartered in Silicon Valley with R&D and manufacturing teams in New York, Dresden and Austin.
Shareholders also gave the go-ahead for issuing 58 million AMD common shares to Mubadala Development Co., a joint stock company whose sole shareholder is the Abu Dhabi government.
This brings Mubadala’s stake in AMD to more than 16%, with the company also being offered warrants of 35 million more shares if desired.