AST Research Pays Off 3-Year Tandy Note

AST Research Inc. said it paid off a $90-million three-year note to Tandy Corp. using $30 million in stock and $60 million in cash raised by issuing new shares to Samsung Electronics Co.

The transaction raised Samsung’s stake in AST from 40% to 46%. AST said it issued a total of 13 million shares, representing 23% of its stock outstanding, under agreements with the two companies.

The note stemmed from AST’s 1993 acquisition of Tandy’s personal-computer manufacturing unit. Fort Worth, Texas-based Tandy received about 4.5 million AST shares along with the $60 million, the companies said.

Seoul-based Samsung advanced the cash to AST this week under a 1995 letter of credit. Samsung received 8.5 million AST shares in exchange for the cash, and now owns 26.4 million shares. Samsung still holds options on an additional 4.4 million shares. If exercised, Samsung would own 49.6% of the Irvine computer manufacturer.