Abu Dhabi's Mubadala sells 34.9 million shares in U.S. chipmaker AMD

ABU DHABI (Reuters) - Abu Dhabi’s Mubadala Investment Co has sold 34.9 million common equity shares in Advanced Micro Devices (AMD), a company spokesperson said on Tuesday, and plans to convert 75 million warrants in the U.S chipmaker.

Mubadala did not disclose the sale price; but the market value of the 34.9 million shares was about $842 million based on Monday’s closing price.

The Abu Dhabi state fund, which has stakes in General Electric and private equity firm Carlyle Group, first invested in AMD in 2007.

AMD is a supplier of standard computer microprocessors, and rivals Intel Corp and Nvidia Corp.

Mubadala will continue to be a major shareholder in the global semiconductor firm after the transaction, with ownership of about 6.9 percent, once the 75 million warrants are converted to common equity shares, the company said.

The state fund has been trimming its stake in AMD in recent years. Mubadala had an initial stake of 12.9 percent in the chipmaker, according to its annual report for 2017 financial year.

“Today’s transaction remains in line with Mubadala’s overall investment strategy to monetize mature holdings to deliver attractive commercial returns,” Brian Lott, a spokesman with Mubadala said.

Converting the warrants will provide AMD with $448.5 million, Mubadala said in a statement issued in Abu Dhabi, the capital of the United Arab Emirates.

Mubadala Investment Co manages a $225 billion portfolio.

Reporting by Stanley Carvalho, Writing by Maher Chmaytelli and Hadeel Al Sayegh, Editing by Sherry Jacob-Phillips