Infineon Technologies, a German semiconductor company, has stated that it undervalued its defunct memory-chip business, Qimonda, by 1.72 billion euros ($1.88 billion) during its carve-out for a public listing. This information comes from a court-appointed expert's decision in a legal dispute that has been ongoing for 14 years.
Qimonda, a memory-chip company in which Infineon held a majority stake, filed for insolvency in 2009, several years after its public listing. Michael Jaffe, the insolvency administrator, later sued Infineon in Munich district court, claiming that Qimonda was entitled to reimbursement due to certain declarations being omitted during the carve-out process.
Infineon revealed late Monday that the expert determined Qimonda's foreign business to be at a value of minus EUR1.045 billion and its domestic business at minus EUR72.3 million. However, Infineon clarified that this does not necessarily indicate a liability on their part.
Infineon stated, "The submission of the opinion represents an interim step in the pending legal dispute. The amount of potential liability of Infineon depends on other aspects."
At present, it remains uncertain when the court will reach a final decision on this matter.
As of September 30, Infineon has set aside EUR212 million in provisions related to the lawsuit with Qimonda.
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