Munich, Germany: A global restructuring and cost-reduction program is in the works for German chipmaker Qimonda. As a part of this program, the company also announced an agreement with Micron Technology to sell its 35.6% stake in Inotera Memories, a joint venture it has with Nanya Technology Corp. Under terms of the agreement, Micron agreed to purchase Qimonda’s shares in Inotera for US$400 million in cash (approximately €296 million) in two installments.
Qimonda expects to record a one-time book loss on its Inotera investment of approximately €300 million as a result of the transaction. Citigroup Global Markets Limited acted as exclusive financial advisor to Qimonda in connection with the transaction.