Apollo to buy Intel’s stake in Irish business
Intel Corporation has reached an agreement with Apollo investment firm. The deal is worth USD 11 billion and involves selling 49% of the shares in the joint business in Ireland.
Intel has decided to sell its stake in a joint venture in Ireland. The joint venture operates the Fab 34 processor manufacturing plant. The American company’s deal with Apollo is another step in optimising costs. Intel has been facing an increased burden on the financial side of the business and is looking for ways to reduce it.
In addition, the company is not giving up hope of regaining its leading position in the semiconductor sector. Intel director Pat Gelsinger is actively promoting this idea through a series of rather expensive projects:
1. The company hopes to regain popularity for products where demand has declined.
2. By investing in manufacturing facilities around the world to increase product output.
3. The company utilises outsourcing of manufacturing.
4. Intel is expanding its network of external customers to distribute products,
According to Gelsinger, the Apollo deal brings the company closer to achieving the goals of its investment programme. The key is to ensure financial flexibility. At the same time, Intel intends to expand its manufacturing operations worldwide.
Overview of Apollo’s business
Apollo is a US-based alternative investment management firm. Its main areas of focus are:
– lending;
– private equity;
– real assets.
The company has over USD 500 billion in assets under management, of which USD 328 billion are credit assets. These assets include distressed debt, mezzanine funds and hedge funds. Apollo’s clients include pension, sovereign wealth, and institutional and private investors.
The firm has been active in the market since 1990. Since then, its DEF funds have generated an IRR of approximately 24%, net of fees. Apollo has many high-profile clients, among which are Yahoo, Redbox, Shutterfly and others.
Apollo operates through private funds and manages the AIC Fund, a publicly traded DEF that provides mezzanine debt and equity investments to mid-market companies.
At the same time, as of 2023, the company has stepped up its non-traditional lending (NAV) business. This business provides capital to private companies operating in high-cost industries. Apollo’s decision is in response to the growing interest from businesses in this type of lending, as the rules governing traditional lending have become more restrictive.
For Apollo, developing the NAV sector is a great way to expand its operations and attract new customers. The company is also increasing its efforts in the insurance sector, strengthening the market position of its Athene division.
