Applied Materials Announces Update on Kokusai Electric Acquisition Agreement
March 22 2021 - 8:45AM
Applied Materials, Inc. today announced that the amended Kokusai
Electric Corporation share purchase agreement with KKR HKE
Investment L.P. may have terminated in accordance with its terms on
March 19, 2021 after the parties were unable to confirm timely
regulatory approval in China. If Applied does not receive
confirmation of timely approval prior to the March 26, 2021
deadline for payment of the termination fee, Applied will treat the
agreement as terminated and pay KKR a termination fee of $154
million in cash.
The Applied Materials Board of Directors has approved a new $7.5
billion stock buyback authorization, supplementing the previous
authorization which has approximately $1.3 billion remaining.
Additional information about Applied’s capital allocation plans
will be shared at the company’s upcoming Investor Meeting.
Forward-Looking Statements
This press release contains forward-looking statements,
including those regarding the status of regulatory approval related
to Applied’s proposed acquisition of Kokusai Electric Corporation,
which are subject to known and unknown risks and uncertainties that
could cause actual results to differ materially from those stated
or implied, including but not limited to the parties’ concurrence
regarding the status of regulatory clearance, the parties’ ability
to satisfy conditions precedent to consummation of the proposed
acquisition in a timely manner or at all, and other risks and
uncertainties described in Applied’s filings with the Securities
and Exchange Commission, including its recent Forms 10-Q and
8-K. All forward-looking statements are based on management’s
estimates, projections and assumptions as of the date hereof.
Applied undertakes no obligation to update any forward-looking
statements.
About Applied MaterialsApplied Materials,
Inc. (Nasdaq: AMAT) is the leader in materials engineering
solutions used to produce virtually every new chip and advanced
display in the world. Our expertise in modifying materials at
atomic levels and on an industrial scale enables customers to
transform possibilities into reality. At Applied Materials,
our innovations make possible the technology shaping the future.
Learn more at www.appliedmaterials.com.
Contact:Ricky Gradwohl (editorial/media)
408.235.4676Michael Sullivan (financial community) 408.986.7977
Applied Materials (NASDAQ:AMAT)
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