Intel completes Numonyx transaction with STMicroelectronics and Francisco Partners

Telecomworldwire,  March 31, 2008  

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TELECOMWORLDWIRE-31 March 2008-Intel completes Numonyx transaction with STMicroelectronics and Francisco Partners(C)1994-2008 M2 COMMUNICATIONS LTD http://www.m2.com

Chip manufacturer Intel Corporation has revealed that it has finalised and completed its transaction with STMicroelectronics and Francisco Partners, in order to create a new, independent semiconductor company Numonyx B.V.

Intel said the new company will design, develop and manufacture NOR and NAND flash memory products. It has transferred the assets associated with its NOR flash memory business and certain assets relating to its phase change memory initiatives to Numonyx in exchange for 45.1% ownership in Numonyx.

A 48.6% ownership interest in Numonyx has been acquired by ST Microelectronics, while Francisco Partners has acquired a 6.3% ownership interest in exchange for a USD150m cash investment. Numonyx will reportedly receive USD450m of debt financing at closing from Intesa Sanpaolo S.p.A and Unicredit Banca d'Impresa S.p.A as part of the overall transaction, along with a USD100m committed revolving credit facility.

According to Intel, it will record further non-cash impairment of around USD300m, related to the assets transferred to Numonyx and other costs associated with the transaction, in the first quarter of 2008. About 2,500 Intel employees are joining Numonyx as part of the transaction.

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