Intel to Sell 49% Stake in Irish Joint Venture to Apollo for $11bn
Intel, the multinational technology company, is set to sell 49% of its stake in an Irish joint venture to investment company Apollo Global Management. The deal, set to be completed within this quarter, was first announced at the end of April. It is understood that Apollo will pay Intel about $11 billion for the stake.
In a statement issued this week, Intel clarified that the joint venture with Apollo would manage the operations of Ireland’s Fab 34 facility. The collaboration scheme mirrors Intel’s approach to constructing two facilities in Arizona, partially financed by Canadian investment company Brookfield. Despite not having specific management rights, Intel’s partner can expect a portion of the revenue generated from the companies’ product sales. The Arizona project required Brookfield to invest up to $15 billion.
Fab 34 Facility and Future Plans
The construction of the Fab 34 unit in Ireland is nearing completion, and the financing deal for the project is expected to be closed by the end of this quarter. The facility is set to begin chip production based on Intel 3 and Intel 4 technologies. The agreement with Apollo states that Intel will purchase a guaranteed minimum quantity of the facility’s products and will give it priority over other own locations when distributing chip production orders. This arrangement is set to protect Apollo’s interests as an investor in Fab 34.
