U.S. may expand Nvidia and AMD’s 15% China chips deal to other companies
Investing.com -- Mobileye Global Inc. (NASDAQ:MBLY) stock fell 10% after the company announced a secondary offering of 45 million shares of Class A common stock by Intel Overseas Funding Corporation, a wholly owned subsidiary of Intel Corporation (NASDAQ:INTC).
The offering represents a significant move by Intel to reduce its stake in the autonomous driving technology company. Intel’s subsidiary also intends to grant underwriters a 30-day option to purchase up to an additional 6.75 million shares of Mobileye’s Class A common stock.
Concurrent with the offering, Mobileye has agreed to repurchase $100 million of its Class A common stock from Intel’s subsidiary at the same price per share that underwriters will pay in the offering. This repurchase was approved by Mobileye’s disinterested directors not affiliated with the selling stockholder.
Additionally, Intel’s subsidiary plans to voluntarily convert an additional 50 million shares of Mobileye’s outstanding Class B common stock into Class A common stock, contingent on the closing of the offering. The subsidiary has indicated it intends to hold these converted shares rather than sell them immediately.
Mobileye will not be selling any shares in the offering and will not receive any proceeds from the sale. The concurrent repurchase is expected to be completed alongside the offering, though the offering itself is not conditional on the repurchase being completed.
The transaction comes as Intel continues to adjust its investment portfolio. The share offering will increase the public float of Mobileye’s Class A common stock, potentially enhancing liquidity for the stock while allowing Intel to monetize part of its investment in the autonomous driving technology company.
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