Intel agrees to pay $14.2B to repurchase Apollo's 49% stake in the Fab 34 joint venture in Ireland, and plans to issue $6.5B in new debt to fund it; INTC up 10%
Intel Corp., the chipmaker aiming to restore its manufacturing prowess, agreed to pay $14.2 billion to buy back half of a plant …
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Intel Pays $14.2B to Buy Back Apollo's Stake in Irish Fab
Intel will repurchase Apollo's 49% stake in the Fab 34 joint venture and take on $6.5B in new debt to fund the deal.
Intel is shelling out $14.2 billion to reclaim full ownership of its Fab 34 chip plant in Leixlip, Ireland. The deal buys back Apollo's 49% stake in the joint venture the two struck to fund the facility.
To cover the tab, Intel plans to issue $6.5 billion in new debt. That's a hefty chunk of borrowing for a company still working to restore its manufacturing credibility.
Fab 34 is a key piece of Intel's chipmaking ambitions. Bringing full control back in-house signals the company wants no partners standing between it and its fabrication future.
The move consolidates Intel's position but loads up the balance sheet. Whether the manufacturing turnaround justifies the price tag remains the billion-dollar question — fourteen of them, to be exact.