Intel buys back 49% stake in Leixlip fab

Apollo paid $11.2 billion for its stake and is selling it back to Intel for $14.2 billion.

Intel will borrow $6.5 billion to buy the stake and pay for the rest out of its cash in hand.

The 2024 sake enabled Intel  ‘to unlock and redeploy capital to advance its strategic priorities including accelerating the buildout of Intel 4 and Intel 3 and of Intel 18A’, says the company.

“We thank Apollo for their ongoing partnership on our journey to build a world-class wafer fabrication and advanced packaging foundry anchored in trust, consistency, and execution,” said David Zinsner, Intel CFO. “Our 2024 agreement was the right structure at the right time and provided Intel with meaningful flexibility, enabling us to accelerate critical initiatives. Today, we have a stronger balance sheet, improved financial discipline and an evolved business strategy. We appreciate Apollo’s continued collaboration to reach this outcome as we realign our capital structure with our long-term strategy.”