Middle East Firm Buys Stake In Chip Maker AMD

United Arab Emirates-based investment firm buys 8.1 percent stake in No. 2 microprocessor maker Advanced Micro Devices for $622 million.

SUNNYVALE, Calif. (AP) — The Abu Dhabi government's investment arm is buying an 8.1 percent stake in No. 2 microprocessor maker Advanced Micro Devices Inc. for $622 million (euro424.5 million).
A unit of Mubadala Development Co. received 49 million newly issued AMD shares at Thursday's closing price of $12.70 each, the Sunnyvale, Calif.-based chip maker said Friday.
AMD received about $608 million (euro415 million), after reimbursing the United Arab Emirates investment firm for approximately $14.6 million (euro10 million) in expenses.
AMD said it will use the proceeds for general corporate purposes including investing in research and development, product innovations and manufacturing.
The company said Mubadala will not receive any board representation as part of the non-controlling, minority investment. This transaction is not therefore subject to review by the Committee on Foreign Investment in the U.S.
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