AST Shareholders OK Sale of 40% Stake to Korean Firm

Shareholders of AST Research Inc. voted Friday to approve a major investment by a South Korean company as the troubled computer maker said it will post an unexpected loss for its fourth fiscal quarter.

Shareholders approved a $378-million investment by Seoul-based Samsung Electronics Co., which will end up with 40% of AST’s stock and gain a minority of the seats on AST’s board of directors.

The investment will help AST pay for new manufacturing equipment and materials. In addition, the agreement will give AST access to memory chips and other computer components made by various Samsung divisions.

AST began looking for a partner last fall after the company suffered losses in the first fiscal quarter.

The company lost $69.4 million, or $2.15 a share, in the nine months ended April 1, but executives had predicted until Friday’s announcement that AST would break even. They did not specify how much they expect the company will lose.

AST shares dropped 25 cents to close at $15.50 per share Friday in Nasdaq trading.