The semiconductor fabs in Singapore to be sold off

[Sammyboy RSS Feed]

An honorable member of the Coffee Shop Has Just Posted the Following:

AMD Announces Proposed Plan to Sell Singapore Facility

AMD has announced a proposed plan to sell off and lease back its Singapore facility. The news echoes AMD's decision to sell and lease back its "Lone Star Campus" in Austin, Texas to Southwest Parkway Holdings earlier this year.

AMD said Thursday that it had entered into a "conditional put-and-call option agreement" to sell and lease-back its Singapore facility to HSBC Institutional Trust Services. According to Advanced Micro Devices, the transaction is expected to generate approximately $46 million in proceeds (net of all fees), which will be reflected in AMD's third quarter 2013 financial statements.

Under the terms of the agreement, AMD Singapore will continue its operations in a portion of the Singapore facility under a 10-year sub-lease agreement with Sabana REIT. This sub-lease agreement would kick in upon the sale's closing. Before that can happen, AMD Singapore needs approval from the JTC, Singapore's entity for managing industrial infrastructure.

The move is part AMD's broader strategy to reduce investments and capital in non-core parts of the business. In March of this year, AMD entered into a transaction that saw the company sell its Austin, Texas campus to Southwest Parkway. AMD then leased it back on a 12-year agreement. That deal was said to generate approximately $164 million in cash for the chip maker.


Click here to view the whole thread at www.sammyboy.com.