The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Jonathan Guilford

NEW YORK, April 1 (Reuters Breakingviews) - The buyout giant invested $11 bln in a manufacturing hub, helping the chipmaker to tough out a rough patch. It’s now selling that stake back for $14 bln, a nice return even as the buyer’s earnings should benefit. For once, private capital really did bridge across public worries.

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CONTEXT NEWS

Intel said on April 1 it had agreed to repurchase a 49% equity stake in a chip manufacturing facility known as Fab 34 in Ireland for $14.2 billion. In 2024, funds managed by Apollo Global Management and affiliates agreed to pay $11.2 billion for the stake.

Intel expects to fund the purchase through cash on hand and the issuance of approximately $6.5 billion of new debt.

In August, the U.S. government said it would make an $8.9 billion investment in Intel common stock, equal to a 9.9% stake, funded by grants that had been previously awarded but not disbursed to the company under the U.S. CHIPS and Science Act and the Secure Enclave program.

That same month, Intel announced that Japanese investment firm SoftBank would invest $2 billion in the company’s common stock. Chip designer Nvidia subsequently announced in September that it would invest $5 billion in Intel’s stock.

Goldman Sachs provided financial advice to Intel, while Morgan Stanley advised the seller’s independent board.