AUSTIN, Texas (AP) -- Shareholders of Advanced Micro Devices Inc. on Wednesday approved a stock transaction that clears the way for the computer chip maker to spin off factories and sell a stake of the company in a deal with the Abu Dhabi government.
AMD shareholders at a special meeting in Austin granted approval for a transaction that's the plan's final closing condition. Sunnyvale, Calif.-based AMD expects the deal to close by March 2.
A vote had originally been set for Feb. 10, but AMD postponed the meeting after only 42 percent of investors had voted by the initial date. While AMD said then that nearly all the votes cast supported the company's plan, it needed at least half of investors to vote.
Stockholders agreed to issue 58 million AMD common shares to an affiliate of Mubadala Development Co., an investment arm of the government of the Persian Gulf state of Abu Dhabi. That transaction is part of a larger deal that would allow AMD to spin off its factories in a moneysaving move.
The stock sale will boost Mubadala's stake in AMD to more than 16 percent. Shareholders on Wednesday also approved giving Mubadala warrants to buy 35 million more shares, which, if exercised, would give the company ownership of nearly a fifth of AMD's stock.
AMD will spin off its manufacturing facilities to form The Foundry Co. in a joint venture with Abu Dhabi's Advanced Technology Investment Co.
Shares of AMD dipped a penny to $2.36 in midday trading.
