9th May 2016 07:54
LONDON (Alliance News) - Shares in chipmaker Imagination Technologies PLC were trading higher on Monday after it disclosed in a regulatory filing that Chinese state-backed technology conglomerate Tsinghua Unigroup International Co Ltd bought a 3.0% stake in the company.
Imagination shares were up 15% to 173.25 pence on Monday morning, the best performer in the FTSE All-Share.
Tsinghua Unigroup, speaking to Reuters in November last year, said it plans to spend USD47.0 billion in the next five years in a push to become the world's third-largest chipmaker.
The company is controlled by Tsinghua University, which counts Chinese President Xi Jingping amongst its alumni.
Tsinghua Unigroup last August made a USD23.0 billion informal offer to buy US-based Micron Technology Inc, which was rejected, and has already bought stakes in US data storage group Western Digital Corp and Taiwan-based Powertech Technology Inc.
Imagination is an oft-cited potential takeover target and in March had seen its shares push higher after reports Apple Inc, the US technology behemoth, was interested in buying the company. Apple subsequently quashed those reports and said it did not intend to make an offer for Imagination at the current time.
By Sam Unsted; [email protected]; @SamUAtAlliance
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