By Cristina Roca 
 

Infineon Technologies AG has decided on a capital increase and targets gross proceeds of about 1 billion euros ($1.09 billion), it said Tuesday.

The Frankfurt-listed company said it will increase its capital by about 4% by issuing new no-par value ordinary shares against cash.

The shares will be offered in a private placement which will take place via accelerated bookbuilding and start immediately, Infineon said.

The proceeds from the transaction will be used to repay part of the loans that Infineon entered in order to finance its acquisition of Cypress Semiconductor Corp., the company said.

Trading of the new shares should start on June 3. The new shares will carry full dividend rights starting Oct. 1, 2019, Infineon said.

 

Write to Cristina Roca at cristina.roca@dowjones.com; @_cristinaroca

 

(END) Dow Jones Newswires

May 26, 2020 12:42 ET (16:42 GMT)

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