EyesonHawk2
02 Sep 2017
Canyon Bridge, Lattice &Trump! This might put the kibosh on things!!Trump to decide on China-backed buyout of U.S. chipmaker(Reuters) - President Donald Trump will decide in the next two weeks whether to block a Chinese-backed private equity firm from buying a U.S. chipmaker, putting his economic and diplomatic relations with China under a spotlight.Lattice Semiconductor Corp (LSCC.O) said in a filing Friday it will seek Trump’s approval for its proposed $1.3 billion sale to Canyon Bridge Capital Partners, gambling that the former real estate dealmaker will approve the tie-up against the advice of the Committee on Foreign Investment in the United States (CFIUS), which scrutinizes foreign deals for national security concerns.The decision, which the filing said will be made by the White House in the next 15 days, comes at a sensitive time. Relations are already strained between Washington and Beijing over trade and North Korea, and the Chinese communist party is preparing to hold its once-every-five-years congress next month.The odds are not good for Lattice. If Trump approves the transaction, it would be unprecedented. U.S. presidents, who have the final authority on such investments, have always sided with CFIUSOTHER DEALS AT STAKECanyon Bridge’s ability to acquire other Western semiconductor companies could be diminished if the Lattice deal collapses. This is because most acquisition targets have U.S. operations, making them subject to a CFIUS review.Canyon Bridge is working on a bid for British semiconductor company Imagination Technology Group Plc (IMG.L), the sources said. If Canyon Bridge clinches that deal, it would be subject to CFIUS review since Imagination Technologies acquired U.S. chip designer MIPS in 2013.While Canyon Bridge could choose to divest MIPS, which accounts for a small fraction of Imagination Technologies’ business, there is no certainty that would be enough to resolve all CFIUS issues, according to the sources.Imagination Technologies did not respond to a request for comment.FULL ARTICLE HERE:[link]
EyesonHawk2
31 Aug 2017
City AM This from Tuesdays City AM. The stand out statement being: “significant progress” had been made in talks between Canyon Bridge and Imagination.Full article:Imagination Technologies shares were up on the close as a China-backed fund closes in on its takeover offerLondon-listed Imagination Technologies ended today (Tuesday) with its share price up almost six per cent on the previous close, beating down short sellers’ hopes of a crash.The electronic chip maker’s shares shot up in morning trading to highs of 134.5p, following weekend reports from Sky News that China-backed fund Canyon Bridge Capital Partners was closing in on a takeover. The price settled at 126p on the close.Imagination put itself up for sale in June after losing a contract to supply Apple, its biggest customer, in April. Its share price plummeted by more than 60 per cent following the loss, causing hedge funds Algert Global and GSA Capital Partners and asset managers Lombard Odier and Numeric Investors to increase their short positions in expectation of a flop.But the short sellers look set for disappointment. Sources reportedly said that “significant progress” had been made in talks between Canyon Bridge and Imagination, and a formal bid could be tabled in the next fortnight.Any offer from the fund, which was revealed last year to be part-funded by the Chinese government, would place pressure on UK Prime Minister Theresa May.May has vowed to crack down on foreign takeovers which might not benefit the UK economy, and the Conservative party’s manifesto stated:"We will require bidders to be clear about their intentions from the outset of the bid process; that all promises and undertakings made in the course of takeover bids can be legally enforced afterwards; and the government can require a bid to be paused to allow greater scrutiny."
Hub
31 Aug 2017
Re: Bid? 193p would be a nice starting point but I fear the first bid may be just shy of this at around 185p.Second bid should be bearer 195p and the counter bid/war taking price into 225p to 250p ranges.Final game will hopefully involve Apple coming in and paying 270p+.As mentioned before, I'd rather accept 250p from the chinese than accept 270p from Apple. The latter deserve to lose all IP/advantage after their atrocious behavior towards a long term partner.Roll on first bid. I sense it is 'soon' and September looks like being the month for first bid.HUB
forwardloop
30 Aug 2017
Re: Bid? [link] broker Liberum acknowledged the reports in a note to investors today, repeating a ‘buy’ rating and target price of 193p on the stock.
techno foxx
29 Aug 2017
Sorry it was P30 and not the X30 techno foxsorry ignore my last post, I thought this was the X30 chipset with Powervr
techno foxx
29 Aug 2017
Mediatek roll X29 and X30 [link]
Hub
29 Aug 2017
Re: Bid? Apple will not allow IMG IP to go to the chineseAnd that's where the fun beginsI did say this was being walked down merely to get the first 'low ball' offer in which would look 'realistic' if pitched at 170p+ with an sp at 130p+ etc.Had teh sp been nearer 145p, then the news leakage would take it to 150p/160p with first offer having to be a decent wedge above that at 190p etc.Standard 'for sale' stuff to lower price ahead of a first bid.I think the bidding war is about to begin ... in a couple of weeksHUB
EyesonHawk2
26 Aug 2017
Re: Bid? Canyon Bridge have been sniffing around since IMG put themselves up for sale. Sounds as though they are still interested in starting a bid process. Full text from Sky News:A Chinese-backed fund is to test Theresa May's pledge to subject foreign takeovers‎ of British companies to closer scrutiny by lodging a formal bid for the struggling chipmaker Imagination Technologies.Sky News has learnt that Canyon Bridge Capital Partners has hired advisers from the Wall Street bank Citi to work on an offer for Imagination, one of Britain's leading technology businesses.Sources said this weekend that Canyon Bridge had made significant progress during talks with Imagination in recent weeks, with a formal bid expected to be presented to the London-listed group in the next fortnight.They added that talks between Imagination and other unidentified parties were ongoing, and cautioned that Canyon Bridge could yet decide against making a formal bid.Canyon Bridge has offices in Silicon Valley and Beijing but is ultimately funded by entities connected to the Chinese government.Its interest in buying Imagination comes after the Hertfordshire-based company said in June that the loss of its contract to supply Apple with graphics technology for iPhones and iPads‎ meant it would put itself up for sale.That move has left Imagination in dispute with Apple, with the British company telling the stock market last month that it had made "no progress" in resolving it.It also said that it was examining the sale of two of its divisions, MIPS‎ and Ensigma, as well as listening to offers for the whole company.Imagination designs and makes chips for smartphone manufacturers, and ‎also specialises in providing general purpose processing, where it counts the likes of Qualcomm and Broadcom among its key customers.Despite the decline in its stock market value, with its shares down more than 42% over the last year, Imagination continues to be regarded as one of the UK's most technology companies.That status was reinforced by the £24bn takeover of ARM Holdings, its fellow chip designer, by Japan's Softbank last year.The deal came shortly after Mrs May became Prime Minister, since when she has vowed in the pages of the Conservatives' manifesto to reform the rules governing mergers and takeovers."We will require bidders to be clear about their intentions from the outset of the bid process; that all promises and undertakings made in the course of takeover bids can be legally enforced afterwards; and the Government can require a bid to be paused to allow greater scrutiny," the manifesto said.It added that foreign ownership of companies controlling "important infrastructure" would not be allowed to undermine national security or "essential services".A forthcoming green paper is expected to set out the Government's thinking on these issues in greater detail, but City sources believe that a Beijing-backed bid for Imagination‎ would force ministers to extract firm commitments about British technology jobs from Canyon Bridge.The private equity firm has already been struggling to persuade US officials that it should be allowed to own Lattice Semiconductor, a manufacturer of specialist microchips, for which it offered $1.3bn last year.Canyon Bridge has twice refiled an application to the Committee on Foreign Investment in the United States (CFIUS), which has a history of blocking sensitive takeovers of American assets.Imagination's investors will be watching closely for details of the value attached to any offers for the company.Its share price, which has fluctuated wildly in the last year, has left it with a market value of just £350m, down from about £2bn at its peak.Rothschild, the investment bank, is advising Imagination on the talks with bidders.Spokesmen for Canyon Bridge and Imagination both declined to comment this weekend.SEE:[link]
Caddie
26 Aug 2017
Bid? [link] HomeIndustriesSaturday 26 August 2017 3:21pmChinese-backed fund to swoop on Imagination Technologies Helen CahilliPhone 6 Becomes Available In AustraliaImagination Technologies has lost its largest customer, Apple (Source: Getty)Chinese-backed Canyon Bridge Capital Partners has hired advisers as it prepares to swoop on chipmaker Imagine Technologies.Advisers from Citi will be working on the offer, according to Sky News, and the fund has reportedly made some significant steps forward in its bid to clinch the technology business.It is thought that a formal bid may be put forward by Canyon Bridge in the next two weeks, but Imagination Technologies is in talks with other parties.Imagination Technologies said in June that it had lost its supply contract with Apple, and was therefore putting itself up for sale. The firm remains in conflict with Apple, and said last month that it had made "no progress" resolving the dispute. Shares in the British firm are down by more than 40 per cent on last year.While taking offers for the whole company, Imagination Technologies has also expressed an interest in offloading two of its divisions, MIPS and Ensigma.However, any move from the Chinese-backed fund its likely to come under intense scrutiny from the Conservative party, which has vowed to take a tough stance on foreign takeovers.In its manifesto before, the Conservative party said:We will require bidders to be clear about their intentions from the outset of the bid process; that all promises and undertakings made in the course of takeover bids can be legally enforced afterwards; and the government can require‎ a bid to be paused to allow greater scrutiny.
Sarahs husband
24 Aug 2017
Re: ReDenso Licence deal news How long have IMG been waiting for a bid?Even if another company made an offer the board are too incompetent and a greedy bunch so they will mess it up like they did when Apple wanted to buy.I think you need to wake up from your dream right now before it becomes a real nightmare.
Tired and Confused
23 Aug 2017
Re: ReDenso Licence deal news The Company hasn't made a profit in the last 3 years. Correct. But more to the point, IMG is a business which has gobbled up every bit of profit it has ever made since the dawn of time and ploughed it back into R&D. So, in reality IMG has NEVER delivered a profit attributable to shareholders. The only profits punters ever made came from speculation, trading or shorting the shares. My post wasn't misleading it is simply comment about the viability of IMG as a PLC once Apple license fees diminish. The speed they collapse is immaterial because as a loss making Company there losses will only escalate and to say otherwise is disingenuous at best. Nobody is saying IMG doesn't have other paying customers but the stark reality is in 2017 Apple royalties will account for around £65m, around 50% of all income most of which hits the bottom line. Despite this whacking contribution, IMG still cannot generate an overall profit. With R&D cost for ongoing operations increasing all the time and a guaranteed deterioration in cash flow as Apple's exits, IMG situation becomes untenable almost instantly. That is why they are up for sale now! Yes, Apple will use IMG IP in older models but we all know that the life span of these older products is very short indeed and it seems likely that the contributions these products will make to IMG's bottom line will diminish rapidly.What some posters and one in particular fail to understand is that I post from the perspective of a potential investor in a business. This is fundamentally an assessment of risk/reward. My assessment suggest that at this time there is too much risk and little prospect of reward to make IMG a sensible investment at this time.It's still a share to trade and short the only questions are when to get in, when to get out? My view would be to wait until they drop to the same sort of price they fell to in April when they lost around 70% of their value. That was an overdone correction and if you can buy at those sort of prices you can probably ensure that even if you 'wait to see the last card turned' your risk is relatively low because IMG have valuable assets and someone will eventually buy them.AIMHO and DYOR
techno foxx
23 Aug 2017
Re: ReDenso Licence deal news techno foxthis post and web link sort of makes my point better than my last post?[link]
QuelFromage
23 Aug 2017
Re: ReDenso Licence deal news Or put another way it appears that they owed a lot of tax
nick2name
23 Aug 2017
Re: ReDenso Licence deal news "The British tech firm said it made a profit before tax of £2.4m for the year ending 30 April after a loss of £29.4mthe company had negative earnings of £27.9m for thta period, according to iii
Hub
23 Aug 2017
Re: ReDenso Licence deal news nick2name says " bear in mind the company hasn't made a profit in the last 3 years"From July 2017"The British tech firm said it made a profit before tax of £2.4m for the year ending 30 April after a loss of £29.4m the previous year. The chipmaker said group revenue increased 19 per cent to £145.2m. Shares in the company lifted 4.53 per cent to 150p in morning trading." ENDThese shorters really do like spreading nonsense about.In the summer silly season they have dripped it down to 119p from 149p levels. The fall based on what? No news to support the fall and plenty of reasons to support the rise from 115p to 170p... eg; IMG are in talks with multiple parties about a full sale.When September returns the market back to normal service and the orange suntans begin to fade across the trading desks, I imagine the imagination will begin to deliver an imaginative result.Starting with a bounce back to 130's and then 140's which would no doubt be accompanied by some short exposure reductions.IMG is too strategic for the chinese or japanese to leave untouched. The chip sector/graphics sector is massive at present. Consolidation likely across the board.Wake me up when we get the first bid ... actually... wake me up when the second counter bid comes in as that's when it will get interesting.HUB
