Intel Says US Government Subsidy Deal Restricts Sale of Foundry Stake

MT Newswires Live11-29 20:21

Intel (INTC) said in a regulatory filing Wednesday that a $7.86 billion direct funding agreement with the US Department of Commerce limits its ability to sell its stake in its chipmaking unit, Intel Foundry, if it becomes an independent entity.

Among the conditions under the agreement are restrictions on "change of control" transactions such as third-party acquisition of 35% or more of Intel's shares, Intel ceasing to own at least 50.1% shares of Intel Foundry if it becomes a separate legal entity, and Intel ceasing to hold a 50.1% ownership in other affiliated entities.

The agreement also stipulates that if Intel Foundry goes public, Intel must remain the largest shareholder, retain control of the company, and cannot sell more than 35% of its shares to any single shareholder, according to the filing.

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