Mubadala Investment company, the strategic investment arm of Abu Dhabi, sold 34.9 million of its common equity shares in US chipmaker Advanced Micro Devices (AMD) for about $800 million and plans to covert 75 million warrants in the company.
Once the warrants are converted into equity, Mubadala, which has been a major investor in AMD for 11 years, will retain a 6.9 per cent stake in the company. The conversion of the warrants will provide $448.5m to AMD, Mubadala said on Tuesday.
"Today’s transaction remains in line with Mubadala’s overall investment strategy to monetise mature holdings to deliver attractive commercial returns,” said Brian Lott, a Mubadala spokesman. “We have had a long-standing relationship with AMD over the past decade and remain among the company’s top shareholders. We are proud of our partnership with AMD and are confident in the management team’s ability to execute against their technology road map and deliver innovative products to the market.”
Mubadala Investment Company, which has over $220 billion in assets under management, is seeking opportunities in emerging high-growth sectors, such as technology, to reduce dependence on oil wealth and maximise returns in a competitive environment.
The company acquired stakes in technology companies over the years, with investments in the US before pledging $15bn to SoftBank’s $100bn Vision Fund. Mubadala Ventures, the venture capital arm of Mubadala set up in 2017, expects to grow its portfolio of assets to about $1bn by 2021 as it deploys capital from its existing and new funds, including a UAE technology vehicle.
Mubadala, which owns stakes in private equity company Carlyle Group and General Electric, is active in 13 sectors across more than 30 countries, investing in industries that include aerospace, ICT, semiconductors, metals, mining and renewable energy and utilities, and manages a diverse portfolio of financial holdings.