German chipmaker Infineon says 3Q sales slipped 18 pct from last year

Infineon: 3Q sales slip 18 pct from year ago

FRANKFURT — German computer chipmaker Infineon Technologies AG said Thursday that its revenue for the most recent quarter fell 18 percent as customers placed fewer orders.

The company said sales for the quarter that ended June 30, its fiscal third, totaled euro845 million ($1.2 billion) compared with euro1.03 billion a year earlier.

The figures were disclosed in a prospectus outlining plans to raise euro725 million in new capital through the issuance of 337 million new shares from July 20 to Aug. 3.

Infineon is scheduled to release its complete third-quarter results July 29. Its shares closed up 11.8 percent to euro3.50 in Frankfurt.

Last week, the Neubiberg-based company said Apollo Global Management LLC, agreed to acquire about 326 million of the shares which will be issued at a subscription price of euro2.15.

Apollo, which is based in New York, is expected to hold a minimum of 15 percent of Infineon share capital after the rights issue, up to a maximum shareholding of 30 percent, minus one share. Apollo would also get added Infineon supervisory board representation with a 15 percent investment.

Infineon intends to use the money to repay debt and strengthen its liquidity position.

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