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Mubadala sells second stake in US chipmaker AMD

Published: Updated:

Abu Dhabi’s Mubadala Investment Company on Friday said it sold a 3.9 percent stake in US-based semiconductor company Advanced Micro Devices (AMD).

The transaction is Mubadala’s second sale of AMD shares this year.

Mubadala sold 40 million shares or 3.9 percent of the outstanding shares of the company, inclusive of warrants and excluding the convertible bonds, Mubadala spokesman Brian Lott said.

The value of the deal was not disclosed. According to Reuters calculations, the sale value was $529.6 million based on AMD’s closing share price of $13.24 on Thursday.

“This is in line with Mubadala’s strategy as a financial investor with a long-term perspective, to optimise our shareholding in certain assets and monetize them at the appropriate time,” Lott said.

In March, Mubadala sold 45 million shares for around $613 million.

Mubadala continues to be the largest shareholder in AMD, holding 57 million common shares and 75 million warrants, representing a 12.9 percent stake.

Mubadala, which has stakes in General Electric and private equity firm Carlyle Group, among others, was formally merged with another Abu Dhabi investment fund, International Petroleum Investment Co (IPIC) in January.

The merger created a firm with assets of about $122 billion based on valuations at the end of 2016.