AMD wins approval for manufacturing spin-off

AMD can breathe easier today: It won approval to spin-off its manufacturing assets. 

On Wednesday, AMD said that its shareholders approved a proposal to issue shares and warrants to create a joint venture between the chip maker and Advanced Technology Investment Company of Abu Dhabi (statement). This venture, dubbed "The Foundry Company," means AMD gets a lot of capital spending off of its books. 

A week ago, shareholder approval looked like a no-brainer, but AMD didn't garner enough votes. With approval, AMD can clean up its balance sheet, conserve cash and better weather the downturn as a more focused operation. 

The deal to create the manufacturing joint venture is expected to close March 2.

Also see: Asset smart? AMD moves manufacturing off its balance sheet; Bolsters capital