June 17, 2019 / 5:09 PM / 5 months ago

Infineon launches 1.5 billion euro capital hike to help fund Cypress deal

FILE PHOTO: Shareholders arrive for the annual meeting of German semiconductor manufacturer Infineon in Munich, southern Germany, February 16, 2017. REUTERS/Michaela Rehle

FRANKFURT (Reuters) - Infineon Technologies said on Monday it was launching an accelerated capital increase to raise 1.5 billion euros ($1.68 billion) towards the cost of its planned acquisition of Cypress Semiconductor.

The German chipmaker said in a statement that the offering of new shares, by way of a private placement to institutional investors, would increase its share capital by 10%.

Separately, the bookrunner on the deal set price guidance for the placement at 13.66 euros. Infineon shares closed earlier on Monday in Frankfurt at 14.36 euros.

Infineon said on June 3 it had agreed to buy Silicon Valley-based Cypress for $10 billion, paying a 46% premium to expand into next-generation autos and Internet technologies. ($1 = 0.8904 euros)

Reporting by Douglas Busvine. Editing by Jane Merriman

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