Jun. 25 at 4:46 AM
$SKYT Suggest you pay no attention to this clearly incorrect line from Zacks... "
$SKYT just dropped
$1 billion on Fab-25 — game changer or risk?". They didn't "drop" (i.e., "pay")
$1B for the fab, they're "adding" (i.e., "receiving")
$1B+ in new revenue from Infineon over the next four years per guaranteed supply agreement. What they'll "drop" in total for the acquisition is
$110M:
$80M for base purchase of the fab plus
$30M to acquire existing working capital. For the base purchase,
$55M will be paid at closing, and the remaining
$25M will be paid at the end of four years in the form of "wafer credits". Those "wafer credits" essentially represent a discount on further sales to Infineon that occur after the four year mark. Note that the fair market value of Fab 25 was estimated at
$300M. So, that's
$110M to acquire a
$300M fab, and guaranteed new revenue of
$1B over the next four years. Quite a bit different than Zacks indicated with their sensational headline. eh?
