Santa Clara-based chip manufacturer Intel has agreed to buy back Apollo’s 49 percent stake in Intel’s Fab 34 chip manufacturing facility in Ireland for $14.2 billion on Wednesday.
This comes after Apollo led an $11.2 billion investment to acquire the equity through a joint venture entity in 2024.
Intel’s repurchase will be funded through a mix of cash and $6.5 billion in new debt issuances, giving it full ownership of the manufacturing facility again. Intel expects the transaction to increase its earnings per share and strengthen its credit profile starting next year.
“Our 2024 agreement was the right structure at the right time and provided Intel with meaningful flexibility, enabling us to accelerate critical initiatives,” said Intel CFO David Zinsner….