Infineon launches 1.5 billion euro capital hike to help fund Cypress deal
FRANKFURT: Infineon Technologies said on Monday it was launching an accelerated capital increase to raise 1.5 billion euros (US$1.68 billion) towards the cost of its planned acquisition of Cypress Semiconductor.
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 10per cent.
Separately, the bookrunner on the deal set price guidance for the placement at 13.66 euros. Infineon shares closed earlier on Monday in Frankfurt at 14.36 euros.
Infineon said on June 3 it had agreed to buy Silicon Valley-based Cypress for US$10 billion, paying a 46per cent premium to expand into next-generation autos and Internet technologies. (US$1 = 0.8904 euros)
(Reporting by Douglas Busvine. Editing by Jane Merriman)