By moving its headquarters from the US to the Cayman Islands, Canyon bridge was no longer regulated by US law. The British manufacturer holds emergency talks over the proposed appointment of board members from China Reform Holding Imagination Technologies Agrees to Takeover by Canyon Bridge By . Executives worried that the move would hinder the company’s ability to do business in the US, including their star client, Apple. Ray Bingham has since been appointed as interim CEO. About 30% of the world’s mobile phones, or 11 billion devices, and 40% of cars use Imagination Technologies’ graphics chips, Sky News said. When she isn't obsessing over the rise of distributed ledger technology in China, she helps with editing. As part of our ongoing research into Chinese acquisitions in Europe, Datenna decided to highlight and research remarkable cases. The timing of the takeover seems perfect. For more information regarding our services. UK chip designer Imagination Technologies Group has agreed a major deal to be acquired for approximately £550 million.. Clifford Chance advises Imagination Technologies Group PLC on its takeover offer by Canyon Bridge Clifford Chance has also advised Imagination in respect of the sale of its MIPS division to Tallwood MIPS, Inc. (a wholly owned subsidiary of Tallwood Venture Capital); a class 2 transaction under the Listing Rules and which was announced simultaneously with the Offer. The coup, involving putting four Chinese government-backed members on to the board of Imagination Technologies, has led Tory backbenchers to demand ministers toughen pre … The venture capital firm behind Canyon Bridge wants to redomicile Imagination Technologies to China, bringing all its intellectual property along, Sky News said. The takeover has caused a major stir from London to D.C. Clifford Chance has worked with Imagination Technologies for several years, including on its takeover offer by a subsidiary of funds managed by Canyon Bridge and the sale of its MIPS division to Tallwood MIPS, Inc. in 2017. Canyon Bridge, the investment fund that bought Imagination Technologies in 2017, would have attempted to appoint four board members with links to China Reform Holdings in this meeting. The shares in Imagination Technologies were acquired by Canyon Bridge Fund I. In 2017, CFIUS (Committee on Foreign Investment in the United States) blocked Canyon Bridge from acquiring Lattice. The takeover was cancelled, but the chief executives seem to think that it was merely postponed. I won’t go into its entire history here (we have Wikipedia for that), but traditionally it has been famed for two things: its PowerVR GPU technology, and the MIPS CPU technology it acquired in 2012. The government’s intervention followed a campaign led by politician David Davis. Investors in Imagination Technologies are dreaming of a takeover. Other investors in CVC are China Construction Bank and and Shenzhen Investment Holdings. 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After cancelling the meeting, Oliver Dowden demanded that Imagination Technologies’ chairman, Ray Bingham, gather more information on the alleged attempt to seize control of the board. Imagination Technologies Group News Headlines. But only if they are assured that the “proposed change of control” does not take place, Sky News said. It is managed by Canyon Bridge, but most capital (99%) is provided by Yitai Capital (Hong Kong). SemiAccurate has been hearing rumors of this for almost a week and now it appears to be trickling out into the open. The semiconductor and software design company put itself up for sale earlier in June, that same year. It will be continuously updated. This new deal grants the US-based firm access to a wider range of Imagination’s intellectual properties in exchange for license fees. Necessary cookies are absolutely essential for the website to function properly. It is mandatory to procure user consent prior to running these cookies on your website. Two executives at Imagination Technologies, a UK semiconductor design and manufacturing firm, have quit their positions following a postponed boardroom takeover from Chinese investors, Sky News reported citing people familiar with the matter. This category only includes cookies that ensures basic functionalities and security features of the website. In some cases the technologies sit side by side in devices - Apple's iPhone 5, for example, features a PowerVR GPU based on Imagination's architecture, and Apple's A6 CPU which is based on ARM's work. We'll assume you're ok with this, but you can opt-out if you wish. The company creates and licenses semiconductor System-on-Chip Intellectual Property (SoC IP). Imagination’s chief executive Ron Black and two of his C-level executives resigned in protest over the boardroom coup. The acquisition was blocked due to “unresolved national security concerns”. Imagination Technologies Group plc is a British semiconductor and software design company, owned by the Canyon Bridge Capital Partners, a private equity fund based in Beijing, China that is beneficially owned by the Chinese government. By Megan Boxall. The Hertfordshire-based multimedia, processor and communications technology company has recommended an offer by CBFI Investment, a newly incorporated company indirectly owned by a fund managed by US-headquartered Canyon Bridge Capital Partners, to its … Annual results tomorrow for the company which creates the chips that power iPhones and iPads could revive the bid chatter. After a campaign from prominent Conservative MPs, the UK’s culture secretary called Imagination Technologies and, A few days after the takeover was put to bed, the Trump administration decided to. The map utilizes our CUBO database to establish the degree of governmental influence in the acquiring company. Mr Davis warned that Imagination Technologies could have been moved to China had the boardroom takeover succeeded. Image: Imagination Technologies is an important British firm. Imagination Technologies was acquired by a US-based but Chinese state-owned investment firm called Canyon Bridge in September 2017, ... are vulnerable to takeover from Chinese companies. Shenzhen Investment is owned by the Shenzhen local government. The UK’s most prominent national security agencies have been put on alert over the proposed takeover of chip manufacturer Imagination Technologies by a Chinese state-owned company. This meant a transition from a varied provider of processor IP to an almost exclusive focus on GPUs and other visual processors. The US Treasury Secretary stated that “national security risk was related to the transfer of intellectual property, the Chinese government’s role in supporting the deal and the importance of the semiconductor supply chain integrity”. In January, Imagination Technologies. The acquisition was blocked due to “. The company’s Chief Executive Officer, Ron Black. They haven’t seen enough “assurances” the control of the company will not be moved to China. Giles Turner. Latest news and trends about tech in China. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. Evans refuses to be part of a company that is “effectively controlled by the Chinese government,” the news channel said. An impending Chinese takeover of Imagination Technologies may put the UK's military and national security at risk, experts warn. The acquisition of Imagination Technologies by Canyon Bridge was originally approved on the grounds the investment firm operated under US legal ... are vulnerable to foreign takeover bids. These cookies do not store any personal information. blocked Canyon Bridge from acquiring Lattice. This valued Imagination Technologies at approximately £550 million (€619 million). It is speculated that the sale of its microprocessor unit was a strategic move to prevent CFIUS from blocking the upcoming deal between Canyon Bridge and Imagination Technologies. The unrest within the company led to several resignations by key figures. Imagination will hold a board meeting next week which could see control handed to a … Canyon bridge paid £1.82 per share in cash for each share. This new deal grants the US-based firm access to a wider range of Imagination’s intellectual properties in exchange for license fees. Its technology is used in over 30% of smartphones worldwide. Imagination, founded in 1985, is a jewel in Britain’s crown, making microchips used in billions of products from smartphones to wireless speakers. You also have the option to opt-out of these cookies. The aim is to provide greater transparency on Chinese investments in Europe and the links with the Chinese government. unresolved national security concerns”. After losing its biggest customer, Apple, Imagination Technologies devoted its activities toward the GPU business. Learn more about how we use cookies in our cookie policy. This site, like many others, uses small files called cookies to help us improve and customize your experience. Eliza is TechNode's blockchain and fintech reporter. The interim Chief Executive and Executive Chairman of the firm, Ray Bingham, is trying to convince the two C-level executives to stay. These cookies will be stored in your browser only with your consent. This website uses cookies to improve your experience. It looks like the Chinese government is trying to take overt control of Imagination Technologies. Other investors in CVC are China Construction Bank and and Shenzhen Investment Holdings. More by Eliza Gkritsi. Our findings are displayed on an interactive map. Imagination Technologies nears takeover salvation . The largest shareholder (35%) is China Reform (China Guoxin Investment) which is owned by the State Council. The unrest within the company led to several resignations by key figures. The largest shareholder (35%) is China Reform (China Guoxin Investment) which is owned by the State Council. The UK government is seeking increased powers to stop mergers and acquisitions that could threaten British national interests, Sky News reported. It is managed by Canyon Bridge, but most capital (99%) is provided by Yitai Capital (Hong Kong). Context: Last week, Imagination Technologies would have discussed the appointment of four representatives of state-owned China Reform Holdings as directors in an emergency meeting. 06 April 2020. Before the acquisition, it’s primary activities consisted of the design of PowerVR mobile graphics processors and networking routers. In January 2020, then owned by Canyon Bridge, Imagination Technologies once again entered into a multiyear license agreement with Apple. UK based Imagination Technologies sold for, Key semiconductor technology acquired by Chinese investors, ‘Private equity’ investor is actually state-owned, Investor uses Cayman Islands to prevent screening by authorities, Post-acquisition attempt to takeover the management board. This website uses cookies to improve your experience while you navigate through the website. Create today what the world will enjoy tomorrow. The global headquarters are located in Hertfordshire, United Kingdom. “I will not be part of a company that is effectively controlled by the Chinese government,” he said in a resignation letter reported by the BBC. However, they elected not to intervene in Canyon Bridge's takeover of Imagination. This case considers the acquisition of the UK semiconductor company Imagination Technologies. The CCB is owned (through many layers) by the central government’s State Council. Based on the financing and ownership structure, we can conclude that Imagination Technologies is now controlled by the Chinese government. With its global headquarters in Hertfordshire, in the United Kingdom its primary business is in the design of PowerVR mobile graphics processors, networking routers, and its … The CCB is owned (through many layers) by the central government’s State Council. But opting out of some of these cookies may have an effect on your browsing experience. By separating their US business part from the UK business CFIUS would have no authority to block this deal. By moving its headquarters from the US to the Cayman Islands, Canyon bridge was no longer regulated by US law. The company also dedicated resources toward the supply of radio baseband processing, networking, cloud computing, and silicon and system design services. Imagination Technologies strengthens board in bid to calm fears of Chinese takeover The British chip designer has been at the centre of a row over its Beijing-backed owner IMG Share News. Shenzhen Investment is owned by the Shenzhen local government. Why it matters: The semiconductor firm is one of the UK’s most prolific tech assets with over 30 years worth of patents. It currently covers the period from 2010 to the present. This offer signified a premium of 47.4% to the share price on 21 June 2017. One is Softbank-owned Arm; the second is Imagination Technologies. Experts fear that a Chinese takeover of Imagination Technologies will allow China to enjoy a microchip monopoly and to spy on the military. 7 Apr 2020. A Cayman Islands private equity firm called. In April 2020, Imagination Technologies was shaken by internal turmoil. ... CFIUS's intervention comes two-and-a-half years after it blocked Canyon Bridge's takeover of Lattice Semiconductors in 2017. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Imagination Technologies is a company with over 25 years of experience in designing and licensing market-leading processor solutions for graphics. In his resignation letter, Mr Black reportedly told employees that China Reform’s promise to remain a passive investor had not materialised. One person told Sky News that the timing was to ensure that British authorities were distracted by the Covid-19 pandemic. The original company was founded in 1985. In January 2020, then owned by Canyon Bridge, Imagination Technologies once again entered into a multiyear license agreement with Apple. Imagination’s chief executive Ron Black and two of his C-level executives resigned in protest over the boardroom coup. The company has had a rocky time since 2016 though when Apple sto… Financial News Articles for Img.l updated throughout the day. MPs warn Government over Chinese takeover of Imagination Technologies. However, Canyon Bridge moved its headquarters to the Cayman Islands after the failed acquisition of Lattice (a large US semiconductor company). Imagination Technologies shareholders approved a GBP 550 million (roughly $730 million or Rs. Senior MPs in the UK have alerted the government over possible attempt from a Chinese state-owned business to take control of the board of British chipmaker Imagination Technologies. This case study is part of our ongoing research initiative investigating Chinese state-influenced acquisitions in the EU. Yitai is a 100% subsidiary of China Venture Capital Fund Corporation (CVC), a state-owned investment vehicle. At Imagination Technologies, we apply world-renowned engineering expertise to solve today’s most pressing technology challenges; from smarter devices using artificial intelligence to greater insights through augmented reality. As annex to the deal with Canyon Bridge, Imagination sold off its MIPS CPU business to Tallwood MIPS Inc, a company indirectly owned by the US-based Tallwood Venture Capital. Based on the financing and ownership structure, we can conclude that Imagination Technologies is now controlled by the Chinese government. A state-owned Chinese investor is exploiting coronavirus to seize control of Imagination Technologies, the British chipmaker's former boss has warned. Read more: Imagination Technologies: What’s at stake in the fight over control. The US Treasury Secretary stated that “national security risk was related to the transfer of intellectual property, the Chinese government’s role in supporting the deal and the importance of the semiconductor supply chain integrity”. UK Members of Parliament got involved due to the company’s business and strategic importance to the UK. Mr Davis warned that Imagination Technologies could have been moved to China had the boardroom takeover succeeded. Imagination Technologies (IMG) has reached an agreement with Canyon Bridge on the terms of a recommended cash offer. On the 3rd of November 2017, the acquisition of Imagination Technologies by Canyon Bridge Fund I was completed. The sale of Imagination Technologies was approved by the government of then-Prime Minister Theresa May on the basis that Canyon Bridge was licensed and regulated by US law. Two executives at Imagination Technologies, a UK semiconductor design and manufacturing firm, have quit their positions following a postponed boardroom takeover from Chinese investors, Sky News reported citing people familiar with the matter. The fund is based in the Cayman Islands and the custodian of the fund is China’s Bank of Communications. We also use third-party cookies that help us analyze and understand how you use this website. An emergency board meeting was cancelled at the last minute by Oliver Dowden, UK Secretary of State for Culture, Media and Sport. Yitai is a 100% subsidiary of China Venture Capital Fund Corporation (CVC), a state-owned investment vehicle. Details: The two executives, Steve Evans, Chief Product Officer, and John Rayfield, Chief Technical Officer could change their minds. Bingham happens to be a co-founder and partner of the Canyon Bridge private equity firm. 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This site, like many others, uses small files called cookies to help US analyze and understand you.