Imagination, the British chipmaker, is now in a midst of what appears to be a coup. A new report claims that its state-controlled Chinese investor is planning to take over control of the company. The move has incited privacy ramifications.
According to Sky News, Imagination is planning an emergency board meeting set for next week as four representatives from China Reform Holdings are likely to be appointed as directors of the board. UK officials have been reportedly alerted of the situation, as well as the National Cyber Security Center and the GCHQ, the UK's government intelligence agency.
Imagination is one of the UK's top technology companies. It has made graphics processing units (GPUs) for Samsung, Apple, Toyota, Audi, and Hyundai, and its designs are actually used in 40% of automotive GPUs and 30% of the world's mobile phones.
For the uninitiated, Imagination is directly owned by Canyon Bridge Capital Partners, a private equity firm based in the Cayman Islands. Its headquarters is located in Hertfordshire.
China Reform Holdings is the main investor for Canyon Bridge. It has links to Beijing's State Council, the country's top decision-making body and is one of the thousands of Chinese state-owned enterprises in the UK.
Imagination is known for products based on intellectual property, which most people interact with on a day-to-day basis, whether in their offices, homes, cars, and through using their mobile phones. Though the company isn't known to many, it's one of the driving forces of the Internet of Things, with its designs existing in numerous technological products across the globe.
The alleged planned takeover by China Reform Holdings arrives at a time wherein people are distracted attempting to halt the rapid spread of the coronavirus. Should the takeover succeed, it could impact around 900 employees around the world, 650 of which are working in the UK.
It should be noted that Imagination was forced to sell to an outside investor after losing Apple's business. At the time, the Cupertino tech giant chose to work using its own in-house solutions instead of employing the help of third-party chip makers.
Earlier this year, Apple for some reason signed a new agreement with Imagination. However, if the UK chip designer ends up losing its assets to a Chinese state-controlled investor, its latest business with the iPhone maker would be put into question.
Imagination is reportedly seeking legal advice on how to deal with the alleged takeover plan.
