Infineon Technologies raised 1.545 billion euros ($1.74 billion) in an accelerated capital increase to help fund the cost of its planned acquisition of Cypress Semiconductor, it said late on Monday.
Shares were placed at 13.70 euros apiece, above an initial guidance by the bookrunner but 4.6% lower than the 14.36 euros Infineon shares closed at on Monday – a relatively small discount for a transaction of this size.
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 10%. The 113 million new shares were placed in less than two hours.
Infineon said on June 3 it had agreed to buy Silicon Valley-based Cypress for $10 billion, paying a 46% premium to expand into next-generation autos and Internet technologies.
“Infineon said it will equity finance about 30% of the … deal. So another at least 1.15 billion euro measure is still open,” a Frankfurt-based trader said. “We think investors would have preferred that Infineon secures financing in one stop, now hangover will weigh on shares.”
Shares in Infineon were indicated to open 4.9% lower in pre-market trade, compared with a flat DAX.
