Things are looking up for the British manufacturer following its bad news earlier this year.
Earlier this year British microchip manufacturer Imagination Technologies (Imagination) was dealt a body blow when Apple, who hold an 8% stake in the company and who came close to buying the company just over a year ago, announced they would be discontinuing a licencing agreement with Imagination, resulting in the share price slumping by more than 60%. (Read our previous blog on this here).
However, in a positive turn of events for the Hertfordshire firm, Imagination recently saw shares rally by 20% following the board’s announcement it was commencing a formal sales process. Having previously stated the company would put two of its three core businesses up for sale, Imagination has now initiated a formal sales process of the whole group and is in preliminary discussions with potential bidders through Rothschild who will be assisting during the “offer period”.
In a press release on Thursday Imagination said:
“over the last few weeks, we have received interest from a number of parties for a potential acquisition of the whole group. The board of Imagination has decided to initiate a formal sale process for the group and is engaged in preliminary discussions with potential bidders”.
Imagination’s Chief Executive, Andrew Heath, acknowledged it remained in dispute with Apple having accused the tech giant of infringing its intellectual property. Potential bidders will be looking to capitalise on the share slump and it is expected to attract interest from potential buyers such as Intel, Mediatek and several Chinese suitors.
Given the embroilment with Apple and the list of potential bidders, the sales process will be far from simple. Perhaps the easiest way for Apple to make the infringement dispute disappear may be to buy Imagination outright, but for now how this will play out is anyone’s guess.