Intel to buy back Apollo's 49% stake in Ireland fab for $14.2 billion
Intel Corporation (NASDAQ: INTC) announced a definitive agreement to repurchase Apollo's (NYSE: APO) 49% equity interest in the joint venture related to Intel's Fab 34 facility in Ireland for $14.2 billion.
Apollo-managed funds acquired the 49% stake in 2024 through an $11.2 billion investment in the joint venture entity. The original transaction provided Intel with equity-like capital while maintaining balance sheet strength.
Intel plans to fund the repurchase through cash on hand and approximately $6.5 billion in new debt proceeds. The company expects the transaction to be accretive to ongoing earnings per share while strengthening its credit profile in 2027 and beyond.
"Our 2024 agreement was the right structure at the right time and provided Intel with meaningful flexibility, enabling us to accelerate critical initiatives," said David Zinsner, Intel CFO. "Today, we have a stronger balance sheet, improved financial discipline and an evolved business strategy."
Apollo Partner Jamshid Ehsani said the partnership began at an important stage in Intel's manufacturing roadmap execution, where Apollo's capital played a role in accelerating next-generation chip technology production.
Fab 34 operates as a high-volume semiconductor fabrication facility for products using Intel 4 and Intel 3 process technologies, including Intel Core Ultra and Intel Xeon 6 processors. Intel continues making capital investments in its Ireland campus to expand manufacturing capacity.
Goldman Sachs served as exclusive financial advisor to Intel, while Morgan Stanley advised the seller's independent board. The transaction details were disclosed in a company statement.