Imagination Technologies Share Discussion Threads

[tygwyg] 24/9/2017 09:19

irrevocable undertakings cupboard bit bare?... Dunt feel like beginning of end but end of beginning?

[timbob2000] 24/9/2017 09:15

Hammerd, it's in the announcement of the MIPs sale:

[hammerd2] 24/9/2017 08:52

Where is the original reference to this other party that hasn't declared an end to its interest ? I've read about them here a couple of times over the weekend but don't recall seeing where it originated.

[fishman13] 24/9/2017 08:40

I wonder whether the party that hasn't declared an end to their interest is in fact Apple? Why else would they have held onto their 8%? Let's hope for the sake of loyal and long suffering shareholders that £1.82 is not the end of the story.

[hammerd2] 24/9/2017 06:41

This deal looks like the same method used to take out MONI recently, needing just 75% of respondents to accept rather than the old 90% or whatever it was for an unapproved takeover. You'd think Apple would remain at best on the fence so there's 17% of leeway in terms of possible blockers.

After all this time are the big beasts (e.g. Baillie Gifford) going to be OK with a payout of this order ? I'm sure all us small fry are in just to get it over with but might there be some hold outs ?

MONI shareholders weren't convinced in the first offer round and got another 10% added IIRC, then quickly caved after shedloads of marginal benefit traders moved in to hoover up all the sellouts and make 100's of millions x 0.0xp per share.

I wonder if there's the same appetite for ekeing a little extra here by not agreeing to the deal without a little more sugar. Reading the document the only agreed commitment so far seems to be the pitifully small number of shares currently held by the Board plus their gravy boat of options. There's no indication as yet or any large shareholder acceptance. In the event of a MIPS counterbid I am sure the big boys will want to see any extra above $65m added to the offer pot.

More to come on Monday I'm sure.

[hammerd2] 23/9/2017 22:14

$100m cost to buy plus financing costs. It hasn't lost much in the years we've had it. If CB can't have it then I see no reason why it couldn't be dealt with entirely separately - IMG could have set up IMG MIPS Ltd if necessary. $65m then giving all that cash to the company that can't own it anyway is a massive sweetener. But not for us really.

But hey. A bid is in, I am happy that we'll at least get £1.82 and there's a blue sky candy coated unicorns chance of a little dividend from Apple too.

[borromini1] 23/9/2017 21:51

H2 - I'd say the MIPS money is very disappointing at £48m ($65m they switch to $ to make it sound big). What has the total cost of ownership been for IMG?
This looks like another Pure sale where an expected £15m turned into £2.4m with a £2m discount off the cost of the building.

[roninja] 23/9/2017 21:01

(a) The value attributed to the existing issued and to be issued ordinary share capital of Imagination is based upon the 286,143,781 Imagination Shares in issue on 21 September 2017, being the latest practicable date prior to this Announcement, and the 16,325,564 Imagination Shares which may be issued on or after the date of this Announcement on the exercise of options or vesting of awards under the Imagination Share Plans.

182p equates to the likely 302m shares in circulation and fully vested at change of control.

[hammerd2] 23/9/2017 20:45

loc - yes but IMG board should be looking out for us. If it's not important to CB then the money should be set out as $65m to go into the company, but any extra goes to shareholders.

[fsawatcher] 23/9/2017 20:09

when the scheme court hearin?

is this more dosh on top of to deal?

[borromini1] 23/9/2017 18:53

JR - “Scheme Record Time” the time and date specified in the Scheme Document, expected to be 6.00 p.m. on the Business Day immediately after the Scheme Court Hearing.

Consider holding shares at this date to qualify for any dividend relating to an Apple Settlement.

Dividend payout of £14.25m gives a dividend of 5p or £500 per 10,000 shares.

[timbob2000] 23/9/2017 18:46

A little confused here, 1.82p per share x the number of shares in issue (286,143,781) = £520,781,161.

How do they get £550 million @ 1.82p per share?

[life of crime] 23/9/2017 18:34

Hammered, I suspect that CB are more focused on offloading MIPS to a US outfit in order to prevent another intervention by Washington, rather than getting top dollar. It sounds like a fire sale deal to get rid of it.

If there was a counter offer for MIPS from a non-US firm I wonder how interested CB would actually be, if it meant the deal for IMG was held up?

[hammerd2] 23/9/2017 16:57

I'm a little disappointed with the MIPS money - $60m was where I'd pessimistically pegged its value and they haven't managed to beat the least possible by much. I've read the sale docs again and it doesn't seem as though shareholders would benefit at all if MIPS gets sold for a higher amount to someone else. If we got $150m then CB would get to keep the extra cash. Odd that nothing was tagged on to include the possibility that there could be counter offers for MIPS. Have I missed something ?

[life of crime] 23/9/2017 14:31

As per my last musing, I expected to post again re a decent premium for IMG, just not so soon! Looks like Sky were right after all.

182p is a decent offer and the possibility of a counter bid, with one of the interested parties not yet ruling themselves out. As for Apple, it may be worth their while to settle while the going is good, as any Chinese backed bidder is a risk to take on in court. That settlement would be more cash to investors and humble pie for the guys in the space ship in Cupertino. For IMG holders I hope Apple get the cheque book out.

I wonder who is the other party that has not ruled themselve's out? It would be good if it was Arm (backed by SoftBank) and we saw two outstanding UK tech firms merging.

[twatcher] 23/9/2017 12:45

It would be fair to see Apple taken to task over the img situation. However Apple don't have a history of backing down against big companies and deep pockets, there is the ongoing situation with Qualcomm for example.

So I'll be surprised if Apple decide to buy themeselves out of potential litigation.

182p looks like a decent exit given where the company is. The deal has been penned in a lot of detail, which suggests that this is the only deal in town. Maybe others have been spoken too, and this is the one that img have seen to be best. So unless there is a dark horse, I don't think we'll see a counterbid. Unless of course they have another serious contender who has decided to keep their power dry until an initial offer is made.

Wouldn't it be ironic if effectively a Chinese company ended up suing the most prominent US CE company for IP infringement :)

[hammerd2] 23/9/2017 12:13

Seems Apple's bid blocking holding may have been a little over egged.

[sweenoid] 23/9/2017 11:55

Had not countered in the 'short' situation when I was counting the profits this morning 🤑🤑

Looking at the 'short chart' there was a 1% position pre 🍎 perfidy day, that has risen to a DECLARED position of Bout 6.6%, ALL those were shorted at between 100-140p, so about 18milliin short shares declared, probably nearer 20-21 million in total. Those must be bought back.

I may hang around. Day or so to see what happens, Borromini's point about the deep pockets of the Chinese is legitimate , I think there is and I HOOE they do a totally legitimate case for them shafting Apple in the patent courts, I see Apple's position as ....rather awkward to say the least

A very long AUCTION on Monday morning methinks
S

[hammerd2] 23/9/2017 11:46

But shorting hedge funds know everything and do more research than most long investors :-) ha ha how many times do we have to listen to that twaddle ? Nice to see a shafting. Just need IQE to get taken out for £3 now and my investment life is complete 😇

COYI ⚒

[jamesrowe] 23/9/2017 11:46

Can anyone explain what "Any Settlement Return would be made to those Imagination Shareholders on the register of members of Imagination at the Scheme Record Date." means exactly. I expected it to say something like "....the agreement date" where the latter was the date that a settlement was agreed with Apple. Does this mean something different??