6/18/2019, 7:24 AM (Source: TeleTrader)
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Infineon raises €1.55B to fund Cypress purchase

Infineon Technologies AG placed 112.8 million new no par value shares after accelerated bookbuilding at €13.7 apiece compared to the earlier €13.66 guidance. The announcement published on Tuesday adds gross proceeds from the private placement came in at €1.55 billion and that the equities carry full dividend rights as from October 1 of last year. Shares closed at €14.364 yesterday, after which the technology company revealed it would increase the share capital by one tenth.

The German chipmaker, based in Neubiberg, said it would use the funds for a part of the acquisition of Cypress Semiconductor Corp. by replacing a portion of the undrawn commitments under the syndicated term loan facility. The admission of the new shares at the Frankfurt Stock Exchange is expected tomorrow without a prospectus and trading is due to start on June 24. Infineon said it won't be able to issue further shares or financial instruments convertible into shares or to conduct a further capital increase for 90 days.

The company lost 17.28% so far this year while the benchmark DAX stock index added 14.46% in the same period.

Baha Breaking News (BBN) / IT