Intel, ST flash memory company set to be approved
John Walko
EE Times Europe
(03/27/2008 11:10 AM EDT)
LONDON — Numonyx NV, the flash memory joint venture planned by Intel Corp. and ST Microelectronics NV, with financial aid from Francisco Partners LP, is finally expected to be approved early next week.
The companies are planning an announcement Monday (March 31) at which they will give details about the total investment, manpower and R&D and manufacturing plans, "provided the deal has been signed", according to a spokesperson for the venture.
The original deadline for the memory company was supposedly Jan. 1, 2008, analysts said.
The trio called a press conference in late February but that was cancelled, with none of the trio giving any explanation for the move, prompting speculation that financing of the venture has run into trouble.
When the venture was announced in May 2007, the parties arranged for the new company to receive firm commitments for a $1.3 billion term loan and $250 million revolver.
The terms were revised late last year so that financing terms involve a senior loan of up to $650 million, and a $100 million committed revolving credit facility for Numonyx. As anticipated, at closing Francisco Partners will invest $150 million in exchange for a 6.3 percent shareholding.
In exchange for its contribution of its flash memory business, ST will receive 48.6 percent of Numonyx's shares and $364 million through a combination of cash in the range from low double digits to $130 million and long-term subordinated interest-bearing notes.
The venture is expected to be headquartered in Switzerland and include NOR and NAND flash memory R&D, manufacturing and marketing, and include the chip companies' efforts in chalcogenide phase change memory developments.
Reports circulating late last year also suggested the 300-mm M6 wafer fab in Catania Italy, which has been an empty shell for many years, would be reactivated by Numonyx. |
