The offer price of 182p values Imagination at c.£550m and represents a 42% increase over Friday’s closing price.
Companies: Imagination Technologies Group
Imagination Technologies (LON: IMG) has announced today it has reached an agreement for a takeover by Chinese-backed firm Canyon Bridge in a deal worth £550m.
In a separate announcement, IMG said it had reached an agreement to sell its MIPS CPU business to Tallwood VC in a deal worth $65m.
Imagination, who currently supplies its chips to Apple, announced in June it had to sell up after the maker of the iPhone would no longer be using the Group's graphics technology in the smartphones.
The sale to Canyon Bridge at 182p per share represents a 42% increase on Friday's closing share price of 128p.
This morning's share price of 172p is still shy of the offer price as the deal could still be stopped by the US or UK Governments before the November finalisation date.
Commenting on the potential Government intervention, AlphaValue's research note this morning commented:
"Canyon Bridge is a Chinese company and has just seen its acquisition of Lattice semiconductor, a US company, blocked by Mr Trump. So this will be a test for Mrs May, in the context of Brexit, but we actually don’t see what could be done to block the deal, as the UK doesn’t have the equivalent of the Committee on Foreign Investment in the United States."
The sale of the Group to canyon Bridge is also conditional on the finalisation of the sale of its MIPS CPU division to Tallwood, due in October.
