In a bid to allow a potential new investor to take over Imagination Technologies Group, a leading developer of graphics chip technologies, Intel Corp. increased its stake in the company, from which it licenses certain graphics cores, and also said it would consider acquisition of the UK-based firm.
Intel said that through its wholly owned subsidiary Intel Capital Corporation, has acquired a further 934,422 shares in Imagination Technologies Group through its adviser UBS resulting in an aggregate holding of 6,934,422 shares in Imagination Technologies Group (including its existing holding of 6 million shares held by its wholly owned subsidiary Intel Capital (Cayman) Corp.) representing 3.04% of Imagination Technologies Group total issued voting rights.
Even though at this very moment Intel claims it has no intention to acquire Imagination Technologies, it does reserve itself appropriate right.
“Intel Corp. reserves the right to announce an offer or a possible offer to acquire the shares in Imagination Technologies Group which it does not already own and/or to take any other action which would otherwise be restricted under Rule 2.8 of the City Code within six months from the date of this announcement if there is a material change in circumstances or in [certain events],” a statement by Intel with London Stock Exchange reads.
Under “certain events” Intel considers Imagination Technologies’ board of directors’ recommendation to sell the company to Intel, intention of a third-party to take over ImgTec or similar situations.
Intel is known for acquiring various intellectual property companies and may currently be interested in getting the company that licenses graphics cores to numerous chip designers. By making that move, Intel will not only get a plethora of various graphics-related technologies, but will also greatly solidify its positions on the market of graphics processors for mobile devices.