Advanced Micro Devices, Inc. (NASDAQ: AMD) fell about 3 percent Tuesday morning after a large shareholder trimmed its holdings.
Abu Dhabi's Mubadala Investment Co sold 34.9 million shares and intends to convert 75 million subscription rights to shares in shares according to
While Monday's exact selling price is unknown, the share's closing price suggests a value $ 842 million.
Why it's important
Mubadala has owned AMD shares since 2007, but has cut its share over the last couple of years.
"Today's transaction remains in line with Mubadala's overall investment strategy to monetize mature businesses to deliver attractive commercial returns," said Mubadala spokesman Brian Lott.
The perception of maturity is not necessarily encouraging for US chipmaker if the Market Law fails already in competition with rivals Intel Corporation (NASDAQ: INTC) and NVIDIA Corporation (NASDAQ: NVD A) .
Mubadala remains a 6.9 percent owner of AMD after subscription rights have been converted. The conversion will provide AMD with $ 448.5 million, according to the investment company.
AMD shares are trading at $ 23.43 in Tuesday's pre-market session.
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