LONDON (Alliance News) - Intel Capital Corp, the investment arm of chip giant Intel Corp, is going to sell up to 25 million shares, or a 9% stake, in Imagination Technologies Group PLC in a placing, one of the banks conducting the deal said Thursday.
Credit Suisse, which along with Jefferies International and JP Morgan, will conduct the sale by Imagination Tech's biggest shareholder, said Intel Capital will be subject to a 90-day lockup on its remaining stake. Intel Capital currently has a 14.45% stake in Imagination Tech, according to data from Morningstar.
"This placing is being conducted by Intel Capital as part of its ordinary course portfolio management. Intel Corporation continues to have a business relationship with the company, having licensed several generations of Imagination Technologies' graphics and video processing cores. These licenses remain in effect and have not been amended in connection with the placing. Intel corporation and the company continue to discuss opportunities to work together," Intel Capital said in the filing.
The banks will conduct the stake sale through an accelerated book build, meaning little or no marketing is done. The books have already opened.
Imagination Technologies shares were down 5.1% to 224.8 pence on Thursday, although the confirmation of the placing came after the market close.