Intel gets $11B from Apollo for joint venture at Irish chip fab

Intel is to pocket $11 billion from private equity biz Apollo Global Management in exchange for 49 percent of a joint venture that will effectively run Intel's fabrication plant in Ireland. The definitive agreement is intended to allow Intel to "unlock" some of the billions it has already sunk in Fab 34 at Leixlip in Ireland, …

[UnknownUnknown]

Nu Sale and Leaseback

Smells like a new Private Equity wheeze on Sale and Leaseback.

That never ends well.

“… while Intel will have a 51 percent controlling interest, meaning it retains full ownership and operational control of Fab 34 and its assets.

However, the joint venture will manufacture wafers for sale to Intel on a cost-plus-margin basis, meaning it will make a profit from selling wafers to the chipmaker that have been made in its own factory.”

Quite !!! The chip making equivalent of Property/Mortgage Equity Release.