Imagination Technologies Share Discussion Threads

[twatcher] 22/6/2017 11:38

Mallorca9,
you clearly have a reason for promoting your own agenda, but it is not at all based on the news release. The news release says " number of parties for a potential acquisition of the whole Group".

The parties are interested "in the whole group". Not bits and bobs. Separately, MIPS and Ensigma have already been put up for sale individually.

That Liberium piece is embarassing. THey talk about a buyer shuting PURE. IMG sold PURE ages ago as even the most casual of followers know.

CEVA, who are a DISP IP provider, was the counter-bidder to IMG the time of MIPS sale. I wonder if they would be interested in the whole group. The group would have more value if sold to an IP licensor, thus not resulting in a potential conflict of interest that might exist if the company was bought by a semi. CEVA doesn't have any cash, which would be a 'problem'

[orkney] 22/6/2017 11:28

But there are enquiries for the whole group, in addition to bits & bobs (mips & ensigma). I hope Softbank are included in the mix, this will force others to consider the long term consequence of much higher royalty & licence fee charges as a result of Softbank acquiring img.

[richardc77] 22/6/2017 11:07

Understood, but is my hunch it will be for higher than £1.40 a share, it's not financially critical for me either way, so a roll of a dice ;)

[dpmcq] 22/6/2017 11:04

Looking at potential bidders in more detail, Liberum said:



EDA companies are increasingly venturing into the IP space. Cadence bought Tensilica in 2013 for an enterprise value of $350m or 8 times EV/Sales to boost its intellectual property offering. Synopsys bought Virage Logic/Arc in 2010 for $289m or 6 times EV/Sales (business was loss making). Synopsys recently signed a deal with Broadcom for its Arc IP. Rambus is also changing its business model as it moves from a litigator to an IP licensor. We note that Rambus has $318m of cash and an acquisition of Imagination would speed up its transition into an IP company.

Apple is still Imagination’s third largest shareholder. We don’t believe Apple would have an issue with Imagination becoming part of any of the three companies above as it would be part of a better resourced company. There is also a chance that Apple itself could decide to bid for Imagination as it is increasing its internal R&D capability and its mobile OS is very tied to Imagination’s graphics IP given its use of the Metal API.

We believe any potential acquirer would only be interested in Imagination’s Technology/IP business and would shut Pure which would lead to a 20% increase in group earnings before interest and tax.

Any potential acquirer would also get access to Imagination’s patent portfolio and could monetize its large investment to date. Over the last 5 years we estimate that Imagination has invested a total of around £750m, which is greater than its current market cap.

[mallorca 9] 22/6/2017 11:04

Yes Richard but the enquiries will be for bits and bobs.
Understandably the Directors will try to sell the Co as a whole.
What's the debt situation by the way ?

[richardc77] 22/6/2017 10:29

The key is they have been approached which is different to putting it on the block as a fire sale.

[mallorca 9] 22/6/2017 10:23

But they've just returned to profit - about £5m pa inc the Apple business.
Current market cap looks very high.

[richardc77] 22/6/2017 10:19

Yep why sell now? Just getting interesting, this is why I did not sell at or below £1...

[twatcher] 22/6/2017 10:08

Apparently institutional holders disagree, they are the majority holders, and there are no signs of a sell-off today.

[mallorca 9] 22/6/2017 09:59

But no bids.
Sure, bits will be sold off , but can you help me to understand a valuation of £400m.
Maybe they will get £100m. So that's an share price of 35p.
That sounds like a reasonable guess as to the outcome here.

[twatcher] 22/6/2017 09:53

Actually the statement says the directors received interest for the group from a number of parties, so the process has begun because there is interest in buying the group.

[mallorca 9] 22/6/2017 09:26

There haven't actually been any bids.
The Directors have simply decided to sell the business.
Can anyone remind me what the annual profit is here ?

[jamesrowe] 22/6/2017 09:08

Mallorca must be one of the most irrelevant posters that we have seen so far. Talk about a stuck record. He seems to be praying for people to sell so that he can close a dodgy short position. I wonder how teh big institutional shorts are faring.....? :-)

[mallorca 9] 22/6/2017 09:05

It could actually fall much lower than £1.
I guess that there are a lot here in from the £2 days, hoping to get their money back.
Good luck with that but be careful. Those not selling today may deeply regret it.

[celeritas] 22/6/2017 08:53

Well I made a profit anyway, now out.
Have added to hgm and will soon add to aaz.

[mallorca 9] 22/6/2017 08:47

I expect this to fall back below £1 ... so I have opened a short position.

[sogoesit] 22/6/2017 08:44

mallorca 9 is by appearance an oil&gas investor...

[wad collector] 22/6/2017 08:43

Such certainty...

[twatcher] 22/6/2017 08:43

i wonder how 'accidental it was that the Chinese company went over the declarable 3% before going back under.

I'd bet that it's either them or Samsung. Either of them could be in a position to finance a very expensive graphics lawsuit with Apple.

[sheep_herder] 22/6/2017 08:42

1. Google are not going to bid.
2. Apple are not going to bid.
3. No one is going to go up against Apple as there is no case.

Could ARM/Softbank buy them as a defensive play and wind up the GPU business?

Or will we see HiSilicon but them. They're the only company that seems to have the intent and financial backing to go up against Samsung/QCOM.

[mister md] 22/6/2017 08:37

mallorca9: not the best of calls:

05 Apr 2017 - 15:59:20 - 27146 of 27535
May soon be last chance EVER to sell for £1.

mallorca 9 - 05 Apr 2017 - 09:16:24 - 27115 of 27536
short term target .... 37p

[adventurous] 22/6/2017 08:31

What IF :

What if Apple always intended trying to get IMG on the cheap, i.e.: discount their purchases, but have to now join a bidding war, say with (as speculated) Google !!


Also of some note 5.7% of shorts to be closed out at some point!!

[ny boy] 22/6/2017 08:29

Sold @ 148p decent return from 112p

Didn't like the news, was disappointed but happy to get a reasonable return on my cash, reinvest elsewhere, GL to anyone left

[wad collector] 22/6/2017 08:29

What chance Apple complete their trick by buying IMG from their petty cash ?

[mallorca 9] 22/6/2017 08:29

Currently now valued at £400m !!