Imagination Technologies’ MIPS sale no longer needs shareholder backing
The Hertfordshire-based company will still need shareholder approval for the deal with Canyon Bridge.
British chip maker Imagination Technologies no longer needs shareholder backing to sell part of the business after an anonymous bidder pulled out of the race.
The Hertfordshire-based company had said the sale of MIPS – its US micro-processing division – was heading for an investor vote because a potential buyer had not revealed whether it was still pursuing a deal for the whole company.
However, Imagination said on Wednesday that shareholder approval was not needed because the unnamed firm had ended its interest.
It comes after Canyon Bridge Capital Partners – a Chinese fund based in America – secured a £550 million deal to buy Imagination on Friday.
The tie-up will see each shareholder receive 182p per share – a premium of around 42% of the firm’s share price on September 2.
Imagination, which put itself up for sale in June, will still need shareholder approval for the Canyon Bridge deal.
The tech firm also revealed late last week that it had struck a separate agreement to sell MIPS to Silicon Valley venture capital fund Tallwood for $65 million (£48 million).
The deals caused shares to rocket by 35% on Monday.
It helped regain some lost ground after its stock value sank 60% in April when it revealed that US tech giant Apple would no longer use its products, meaning Imagination would not be eligible for royalty payments.
Imagination announced £2.4 million annual pre-tax profit in July, compared with a £29.4 million loss in 2016, while group revenue was up 19% to £145.2 million.