LONDON (Alliance News) - Shares in Imagination Technologies Group PLC fell sharply early Friday after Intel Capital Corp, the investment arm of chip giant Intel Corp, sold a 9.3% stake in the business, a move its banks said wouldn't impact the operational relationship the companies have.
Credit Suisse, which along with Jefferies International and JP Morgan, conducted the sale by Imagination Tech's biggest shareholder, said Intel Capital will be subject to a 90-day lockup on its remaining Imagination Technologies stake of about 5%.
In total, 25 million shares were placed by the banks at 205 pence a share, raising gross proceeds of GBP51.25 million. The sale was done through an accelerated book build, meaning little or no marketing was done.
"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 that announced that the sale would take place late Thursday.
Imagination Technologies shares were down 8.3% to 205.4 pence early Friday, in line with the placing price. That made the stock the biggest faller on the FTSE 250.