Imagination Technologies Share Discussion Threads

[stoxx67] 04/7/2017 08:29

mallorca9 and credibility surely is an oxymoron

if you were short, opportunity to cover was yesterday.

this should now hit 210p in due course.

[orkney] 04/7/2017 08:28

Mallorca's new target was 20p: re post 27807

Licensing up 82%! Now that is a good sign for the future. A very good turnaround. I would say it's final sale price has now edged up

[mallorca 9] 04/7/2017 08:24

What will those figures look like without Apple ?
'May not be able to continue as a going concern'
Sale talks still at preliminary stage.

[pottsey] 04/7/2017 08:17

mallorca 9 are you trying to destroy your credibility? So licencing is up 82%, revenue is up. Adjusted operating profit is almost triple what it was. Debt is cut in half and on track to be gone soon but you still say the value hasn’t changed?

So you are just pulling numbers out of thin air based on nothing. You do know nothing you write on here has any effect on the share price. All you are doing is ruining your own credibility.

There is a Substantial improvement in trading performance in all three units.

[sheep_herder] 04/7/2017 08:13

Well well well. I have to say that the team has surprised me. That isn't too bad a turn around.

[mallorca 9] 04/7/2017 08:13

But no advanced stage talks yet !
Just prelim discussions.
May not be able to continue as a going concern.
It's all Apple's fault !

[richardc77] 04/7/2017 08:08

I'm pretty sure M9 needs no advice, he's super sure of himself ;)

[0penallhours] 04/7/2017 07:59

Mallorca you need to smell the coffee. There are multiple parties interested in the Group, it is retaining customers, making modest profits and has tech that people need. This isn't going for 35p a share. If you are very short currently I'm afraid this could be a costly month or two for you.

[mallorca 9] 04/7/2017 07:53

Maybe worth circa £100m at a stretch - so circa 35p per share.

But ' may not be able to continue as a going concern' - very worrying.

[mallorca 9] 04/7/2017 07:52

Talks still at preliminary stage !!

[brokeroad] 04/7/2017 07:49

However, clearly the component parts of the business still retain significant value.

[mallorca 9] 04/7/2017 07:40

'May not be able to continue as a going concern'.

Reads as the Directors trying to blame Apple for all their problems.

[dan_the_epic] 04/7/2017 07:28

Bit above on revs, bit below on ebit, in line on debt vs what i was expecting. About 1-2% swings on former two

Apple unsurprisingly not budging, number of potential offerors, process ongoing

[snaffleclamp] 04/7/2017 02:25

Clifford Chance (CC) has won a mandate to advise Imagination Technologies, as the UK chip designer puts itself up for sale amid a dispute with Apple.

The CC team advising Imagination is being led out of London by M&A partner Lee Coney, with support from M&A partner Katherine Moir, intellectual property partner Vanessa Marsland, litigation partner Iain Roxborough and competition partners Jenine Hulsmann and Timothy Cornell.

Imagination is currently embroiled in a dispute with Apple, its largest customer, over licensing payments. In April, the US computer giant said it planned to stop using its chip designs – which help power the iPhone, iPad and Apple Watch – by 2019.

However, the Hertfordshire-based business questioned at the time whether Apple could produce its own chip designs without breaching Imagination’s patents.

Last month, Imagination announced it had kicked off a dispute resolution procedure with Apple over licensing payments.

Prior to confirming the formal sale process, Imagination had already put two of its three core businesses up for sale to mitigate the potential loss of its key customer.

In February this year, CC also won a mandate to advise the Co-operative Bank as the troubled bank kicked off the process to find a buyer. Coney is also leading the magic circle firm’s team on this sale, alongside capital markets partner Iain Hunter, corporate partner Hilary Evenett and banking and finance partner Simon Gleeson.

In an update on the sales process issued on Monday (19 June), the Co-op Bank said it was “in advanced discussions with a group of existing investors with a view to a prospective equity capital raise and liability management exercise”.

htTtp://www.legalweek.com/sites/legalweek/2017/06/23/clifford-chance-advises-as-apple-supplier-imagination-technologies-puts-itself-up-for-sale/?slreturn=20170603212217

[borromini1] 03/7/2017 22:21

The shorters who bought after 31 March have been banking on Apple quickly dumping their 24 million shares no matter what the price obtained for them. This senario has not come to pass and is unlikely to occur anytime soon for the simple reason that Apple while having the intention to stop needing to licence IMG IP has not as yet successfully replaced it in proven product. While Apple have adopted their usual tactic of setting up an office in the same physical location as the target company from which they wish to recruit key personnel with the desired know how, they are still releasing phenomenal products based on their collaboration with IMG. Can anyone offer a tenable reason for Apple to choose to dispose of their holding before the all Apple GPU succession has been secured?

[borromini1] 03/7/2017 21:42

What figure can we agree on for the % of shares that have NOT been traded since 31 March 2017, shall we start at 80%. So the shareholders of 80% of IMG shares have chosen not to sell for the range of prices available to date. If the current management suggests the acceptance of an offer that these shareholders deem undervalues the company then is it not the case that a simple majority of the shareholders will have the opportunity to reject the offer and change the management?

[orkney] 03/7/2017 18:13

I agree. That would be a nightmare & just what some, e.g. Mallorca, Would hope for

[rob_evans] 03/7/2017 18:11

Orkney > "The other scenario is that img reject all offers!?"

And the share price does what?

I agree with Sheep Herder, there may well be some tyre kicking, but a sober look at the assets and financials will probably kill any interest.

I'm expecting the results to be awful - there must have been some reason for IMG to change their minds about going it alone with PowerVR, and I suspect we'll see that reason tomorrow.

[dan_the_epic] 03/7/2017 18:09

Wouldn't be wise IMO. Market would take it to assume the offers were low and a reflection of underlying value

[orkney] 03/7/2017 18:06

The other scenario is that img reject all offers!?

[dan_the_epic] 03/7/2017 18:03

If they became interested at say 110, then realistically must be looking st 150+

Assuming they are genuinely interested of course

[mallorca 9] 03/7/2017 17:47

Lol,

closer to 20p I think.

[orkney] 03/7/2017 17:45

Yes, tomorrow is not about the results, it is the img statement on the situation of the sale progress is what the market is really only interested in. The 'interested parties' are looking long term; so I hope & expect a premium on the current share price. Imo, £2 would seal the deal. Any more would be a bonus.

[richardc77] 03/7/2017 17:02

They were contacted by several buyers, I suspect their eye has been off the ball ever since Apple gave them the finger, the buyers will be after IP and will not necessarily be looking at tomorrows profit figures that closely.