A UNIT of Mubadala Investment is seeking to raise US$950 million in a sale of GlobalFoundries shares, two years after the chipmaker went public.
The Abu Dhabi investment fund’s subsidiary is offering to sell shares for US$50.75 to US$52.50 each, according to terms of the deal seen by Bloomberg News. The company intends to buy back US$200 million of the shares at the offering price, an earlier statement shows.
The price range represents a discount of 4.9 to 8 per cent to the US$55.21 per share closing price on Wednesday (May 22) of GlobalFoundries’ shares, according to Bloomberg calculations.
GlobalFoundries’ shares have fallen 8.9 per cent so far this year, valuing the company at about US$30.5 billion. Mubadala is GlobalFoundries’ largest shareholder with an 85 per cent stake before this sale, according to data compiled by Bloomberg.
Representatives for Mubadala and GlobalFoundries did not immediately respond to requests for comment.
The offering consists entirely of secondary shares to be sold by the selling stockholder and it will not receive any proceeds, the statement shows. GlobalFoundries intends to fund the share purchase with cash from its balance sheet.
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GlobalFoundries and Mubadala raised about US$2.9 billion in the company’s IPO in 2021, including an overallotment option.
Morgan Stanley and Bank of America are underwriters of the offering, according to the press release. BLOOMBERG
