Smart Global announces $200 mln SK Telecom investment, plan to rebrand as Penguin Solutions; shares down
16/07/2024 19:10
(Updates. Changes headline, adds company rebrand announcement)
** Shares of memory chipmaker Smart Global Holdings SGH.O
reverse premarket gains and last down 5.8% at $27.65 in Tues
afternoon trading, after announcing strategic investment and
intent to rebrand
** Late Mon, SGH said SK Telecom (SKT) 017670.KS , South
Korea's largest telco, making $200 mln investment in the co
** SGH said plans to use capital to improve its financial
flexibility as it expands its Penguin Solutions' AI factories
** SKT acquiring 200,000 preferred shares convertible into
SGH shares at conversion price of $32.81 per preferred share,
per investment terms
** On Tues, SGH says intends to become Penguin Solutions Inc
later this year, subject to shareholder approval
** SGH shares last Weds jumped ~26% to close at $29.32 after
co posted Q3 beat, aided by demand for its AI systems
** With move on Tues, shares up ~46% YTD giving co ~$1.5 bln
market cap, per LSEG. Stock up nearly 90% over the past nine
months
(Lance Tupper is a Reuters market analyst. The views expressed
are his own)
((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))