Black Friday Sale! Save huge on InvestingProGet up to 60% off

Canyon Bridge bid for Imagination Technologies approved by UK court

Published 02/11/2017, 17:33
Updated 02/11/2017, 17:40
© Reuters. The headquarters of technology company Imagination Technologies is seen on the outskirts of London
AAPL
-

By Ben Martin

LONDON (Reuters) - Troubled chip designer Imagination Technologies will delist from the London Stock Exchange on Friday after a court approved a 550 million pound takeover by China-backed private equity firm Canyon Bridge.

The High Court sanctioned the scheme of arrangement through which Canyon Bridge is acquiring Imagination for 182 pence a share in cash on Thursday, paving the way for its delisting.

This will mark the completion of a deal which has drawn attention since it was announced on Sept. 22 because of problems Canyon Bridge has faced in the U.S., where its founder Benjamin Chow was charged with insider trading on Monday.

In September, before the Imagination takeover was agreed, Canyon Bridge was blocked from buying chipmaker Lattice Semiconductor Corp for $1.3 billion by U.S. President Donald Trump, amid concerns the deal posed a risk to national security.

Chow's case relates to the attempted Lattice deal. He has denied wrongdoing and Imagination's shareholders voted to approve the Canyon Bridge deal the day after he was charged.

Britain's Imagination was forced into a sale after its shares plunged in April when Apple (NASDAQ:AAPL), its biggest customer, said it would stop using its technology, plunging it into turmoil.

© Reuters. The headquarters of technology company Imagination Technologies is seen on the outskirts of London

The deal with Canyon Bridge comes as the British government seeks to increase scrutiny of acquisitions of UK firms by foreign companies. In October, Britain outlined proposals to heighten government oversight of deals involving businesses in the technology and military sectors.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.