Dallas, Texas 09/03/2013 (Financialstrend) – Advanced Micro Devices, Inc. (NYSE:AMD) has entered into a conditional put-and-call option contract with the aim to sell its Singapore arm, Advanced Micro Devices (Singapore) Pte Ltd.
After selling the arm, the company will take it back on lease. In this way, it will not only produce extra income but also spread its business beyond the harassed personal computer industry.
The well known firm will sell its Singaporean plant to another giant HSBC Institutional Trust Services (Singapore) Ltd. The contract will be concluded after getting concluding nod of the JTC Corporation (JTC), the Singapore unit tasked with managing the nation’s business infrastructure.
Following the contract, the company would make foray into a ten year sub-lease to carry on its processes in a portion of the plant.
Upon the conclusion of the transaction, the company anticipates to produce around $46 million. During the third quarterly period, the company anticipates to register a gain of around $16 million. The proceeds will expected be reflected in the firm’s 3rd quarter 2013 fiscal statements when announced on Oct 17, 2013.
The sale is yet an additional attempt by the firm in order to diminish investments and funds in non-core parts of the biz, comprising realty. During the month of March, the firm inked a deal to divest its property in capital of Texas for about $164 million in cash.
AMD is the globe’s 2nd biggest manufacturer of microprocessors. In the last declared quarterly period, the company’s top-line facts were better than its direction, backed by innovative products and sturdy mobile design wins. In addition, the firm’s bottom line hit the Zacks Consensus approximation.
Worldwide personal computer sale figures have been sluggish recently whilst smartphones, tablet computers and other mobile devices have seen sturdy expansion. As a result, AMD is offering chips for game consoles to diminish the firm’s reliance on the slumping personal computer zone.
Also, the firm plans to diversify its business into innovative embedded markets, comprising communication, industrial and gaming among others. It anticipates increasing income input from its embedded biz and boost market share
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