Chipmaker Infineon raises 1.06 billion euros with capital increase

Infinion

The German chipmaker Infineon Technologies has raised about 1.06 billion euros (approximately $1.16 billion) by issuing new shares to partially finance its $10 billion acquisition of US-based Cypress Semiconductor, it has said.

KEY POINTS

  • Infineon Technologies raises over 1 billion Euros by issuing new shares
  • Money will (partly) finance its $10 billion acquisition of US-based Cypress Semiconductor

Infineon said its share capital would be raised by about 4% after a private placement with institutional investors, adding that the shares were priced at 19.30 euros apiece.

The company closed the acquisition of Cypress Semiconductor in April, coupling its own prowess in managing electric drive-trains with Cypress’s superior connectivity in areas such as in-car entertainment.

Infineon said earlier this month that it expects sales to decrease by 5% in the fiscal year to the 30th of September because of the impact of the coronavirus pandemic, compared with an original target of a 5% increase.

Infineon is a leading maker of power management chips used in electric drive-trains, exposing it to the sudden halt in car production that occurred because of the pandemic.

Via our content partners at Reuters. Reporting by Emma Thomasson. Editing by Steve Orlofsky and Lisa Shumaker.

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