German chipmaker Infineon raises 1.06 billion euros with capital increase

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German chipmaker Infineon raises 1.06 billion euros with capital increase
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German chipmaker Infineon Technologies raised about 1.06 billion euros (US$1.16 billion) by issuing new shares to partially finance its US$10 ...

German chipmaker Infineon Technologies raised about 1.06 billion euros by issuing new shares to partially finance its US$10 billion acquisition of U.S.-based Cypress Semiconductor, it said on Tuesday.

The logo of semiconductor manufacturer Infineon is seen at its Austrian headquarters in Villach, Austria, June 3, 2018. REUTERS/Lisi Niesner/FilesBERLIN: German chipmaker Infineon Technologies raised about 1.06 billion euros by issuing new shares to partially finance its US$10 billion acquisition of U.S.-based Cypress Semiconductor, it said on Tuesday.

Infineon said its share capital would be raised by about 4per cent 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 drivetrains with Cypress's superior connectivity in areas such as in-car entertainment.

Infineon said earlier this month that it expects sales to decrease by 5per cent in the fiscal year to Sept. 30 because of the impact of the coronavirus pandemic, compared with an original target of a 5per cent increase. Infineon is a leading maker of power management chips used in electric drivetrains, exposing it to the sudden halt in car production that occurred because of the pandemic.

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