ASML Holding receives a $976 million investment

Deal Participants:
Company: ASML Holding View Profile Charts Homepage
Investors: Samsung Electronics Co View Profile Charts Homepage
Deal Financials:
Investment Amount: $ 976 million
Announced: Aug 27, 2012

PRESS RELEASE - ASML Holding receives a $976 million investment

ASML Holding NV (ASML) on Monday said that South Korean conglomerate Samsung Electronics Co. Ltd. (SSNLF.PK, SSNNF.PK) has agreed to invest in total 779 million euros in the Dutch semiconductor equipment maker for a 3 percent stake and as research fund to develop latest chip technology.

Samsung has joined ASML's Customer Co-Investment Program for Innovation and will contribute 276 million euros to its research and development of next generation lithography technologies over five years. Samsung will also invest 503 million euros foe a 3 percent ASML equity stake under the same general terms as the other program participants.

Under the Co-Investment Program, which was announced on July 9, Veldhoven, the Netherlands-based ASML will accelerate the development of key lithography technologies needed to extend Moore's Law, notably Extreme Ultraviolet or EUV lithography. The company expects that these technologies to benefit the entire industry, and to enable smarter, more powerful, more energy-efficient and cheaper electronic devices for consumers.

With the latest investment, the provider of lithography systems for the semiconductor industry has met its target for aggregate R&D funding commitments of 1.38 billion euros, completing the program.

In early August, Taiwan Semiconductor Manufacturing Co. Ltd. (TSM) had joined ASML's Customer Co-Investment Program, committing to invest 276 million euros in research and development of next generation lithography technologies over the next five years as well as 838 million euros in a 5 percent ASML equity stake.

In early July, Intel Corp. (INTC) agreed to invest about $1 billion in research and development and about $3.1 billion for a 15 percent stake in ASML.

ASML noted that Intel, TSMC and Samsung will each acquire ASML shares, equal to an aggregate 23 percent minority equity stake in ASML for 3.85 billion euros in cash. The shares to be issued to these companies will be non-voting except in exceptional circumstances. The entire cash proceeds of the share issuance will be returned to ASML shareholders through a synthetic buy-back.

As announced earlier, ASML can issue new shares equivalent to 9.99 percent of its issued share capital to Intel as per the authorizations granted at ASML's 2012 Annual General Meeting of shareholders. The issuance of further shares in the program to Intel, TSMC and Samsung, as well as the synthetic buyback, are subject to shareholder approval at the extraordinary meeting of shareholders scheduled for September 7.

ASML no longer plans to solicit the participation of additional customers as the full program target of research and development funding has been committed under the program.

In Amsterdam, ASML shares lost 0.20 euros or 0.43 percent, and are currently trading at 45.95 euros.

Edit History:
Aug 27 '12
This version submitted by Melg8Mike