Smart Global rises after $200 mln SK Telecom investment
16/07/2024 14:17
** Shares of memory chipmaker Smart Global Holdings SGH.O
rise 3.2% to $30.30 premarket after co said SK Telecom (SKT)
017670.KS , South Korea's largest telco, making $200 mln
investment in the co
** SGH shares on course to open at 2-1/2-yr high, if gains
hold
** Late Mon, SGH said plans to use the capital to improve
its financial flexibility as it expands scope and scale of its
Penguin Solutions' AI factories
** Per investment terms, SKT acquiring 200,000 preferred
shares convertible into SGH shares at conversion price of $32.81
per preferred share
** Preferred shares entitled to 6% annual dividend, payable
in-kind or in cash, at SGH's option
** SGH shares last Weds jumped ~26% to close at $29.32 after
posting Q3 beat, aided by demand for its AI systems
** Through Mon, shares up 55% YTD giving co ~$1.55 bln
market cap, per LSEG. Stock has roughly doubled 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))