UK government approves sale of 49% stake in Sondrel

Business news | June 10, 2024

By Peter Clarke

Analog semiconductor EDA & CAD tools

UK chip design firm Sondrel Holdings plc has received government approval for ROX Equity Partners Ltd. to take a 49.2 percent stake in the company.

ROX, a UK-based private equity investment holding company, has subscribed to buy just over 56 million shares at a value of 10 pence each, raising £5.6 million for Sondrel, as part of a refinancing plan for the company (see Sondrel CEO steps down as chip firm faces re-organization). Approval from the Secretary of State was required under the terms of the UK National Security and Investment Act 2021.

Sondrel reported in a regulatory filing that shareholder approval was granted for the scheme in May and that therefore with regulatory approval now achieved the subscription shares are expected to be admitted to trading on the Alternative Investment Market, at 8.00 am on 13 June 2024.

Sondrel said that loans previously given by ROX would be converted into 28,746,000 new shares at an issue price of 10 pence automatically on the admission of the subscription shares to trading on AIM. Together with the subscription shares that will give ROX ownership of 85 million shares out of a total of 172,461,772 shares issued, or a 49.2 percent stake in the chip design company.

Sondrel said that Nigel Vaughan would step down as chairman on admission of the new shares to be replaced by David Mitchard with John Chubb becoming CEO.

Sondrel has designed chips within products from technology brands including Apple (iPhone), Sony (PlayStation), Meta’s (Oculus), Samsung, Google and Sony smartphones, JVC (prosumer camcorders), Tesla and Mercedes-Benz cars. The company has offices in UK, USA, China, India and Morocco.