Imagination Technologies no longer needs approval for MIPS sale

Imagination Technologies said on Wednesday that the proposed sale of its chip business, MIPS, no longer needs investor approval after a third party confirmed it was no longer actively considering making an offer for the chip designer.

Late last week it emerged that Imagination had agreed to be taken over by US-based, Chinese-backed private equity firm Canyon Bridge Partners for £550m. The company also said it had agreed the sale of its MIPS business to US-based Tallwood VC for a cash payment of $65m.

That sale needed shareholder approval under the UK Takeover Code as one party had not confirmed that its interest in Imagination had terminated. Now that Imagination has received confirmation the party is not interested, the sale of MIPS - expected to complete next month - can proceed without shareholder approval.

At 1000 BST, Imagination shares were down 0.7% to 170.25p.