Renewable Energy

Infineon raises $1.7 billion to help fund Cypress deal

Credit: REUTERS/Lisi Niesner

Infineon Technologies raised 1.545 billion euros ($1.74 billion) in an accelerated capital increase to help fund the cost of its planned acquisition of Cypress Semiconductor, it said late on Monday.

113 mln shares placed at 13.70 eur each

Infineon shares indicated 4.9 pct lower

Funds to be used to pay for Cypress Semi deal

Adds final price of placement, shares

FRANKFURT, June 17 (Reuters) - Infineon Technologies IFXGn.DE raised 1.545 billion euros ($1.74 billion) in an accelerated capital increase to help fund the cost of its planned acquisition of Cypress Semiconductor CY.O, it said late on Monday.

Shares were placed at 13.70 euros apiece, above an initial guidance by the bookrunner but 4.6% lower than the 14.36 euros Infineon shares closed at on Monday - a relatively small discount for a transaction of this size.

The German chipmaker said in a statement that the offering of new shares, by way of a private placement to institutional investors, would increase its share capital by 10%. The 113 million new shares were placed in less than two hours.

Infineon said on June 3 it had agreed to buy Silicon Valley-based Cypress for $10 billion, paying a 46% premium to expand into next-generation autos and Internet technologies.

"Infineon said it will equity finance about 30% of the ... deal. So another at least 1.15 billion euro measure is still open," a Frankfurt-based trader said. "We think investors would have preferred that Infineon secures financing in one stop, now hangover will weigh on shares."

Shares in Infineon were indicated to open 4.9% lower in pre-market trade, compared with a flat DAX .GDAXI.

($1 = 0.8902 euros)

(Reporting by Douglas Busvine, Alexander Huebner and Christoph Steitz Editing by Jane Merriman and Michelle Martin)

((douglas.busvine@tr.com; +49 69 7565 1271; Reuters Messaging: douglas.busvine.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Renewable Energy Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More