(Bloomberg) — Intel Corp., the largest US chipmaker by revenue, will sell part of its holdings in Mobileye Global Inc., raising about $1.48 billion for its ambitious spending plans.
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The US company is offering 35 million shares with an option to sell a further 5.25 million shares of the Israeli automated driving technology maker, Mobileye said Monday in a regulatory filing. Mobileye stock has more than doubled since its initial public offering last October. Goldman Sachs Group Inc. and Morgan Stanley will underwrite the sale.
Intel Chief Executive Officer Pat Gelsinger has launched an ambitious plan to regain his company’s lead in the semiconductor industry by building new plants and rapidly improving its manufacturing technology. He’s doing that at a time when the main market for his products, personal computers processors, has slumped. And the company is losing market share, which is hurting sales and profit.
Following the sale, Intel will retain about an 88% stake in Mobileye, which it bought in 2018 for $15.3 billion.
Mobileye shares declined about 6% in premarket trading on Tuesday. The stock had closed down 2.7% to $42.37 on Monday, leaving them up 21% this year. Intel fell 4.6% to $29.86 in New York, pairing its gains to 13% this year.
(Updates with Mobileye premarket share move in final paragraph)
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