(Bloomberg) – Intel Corp., the largest U.S. 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 U.S. company is offering 35 million shares with an option to sell an additional 5.25 million shares of the Israeli maker of automated driving technologies, Mobileye said in a regulatory filing Monday. Mobileye’s stock has more than doubled since its IPO last October. Goldman Sachs Group Inc. and Morgan Stanley will underwrite the sale.
Intel CEO Pat Gelsinger has launched an ambitious plan to reclaim his company’s leadership in the semiconductor industry by building new factories and rapidly improving manufacturing technology. It does so at a time when the main market for its products, personal computer processors, has collapsed. And the company is losing market share, hurting sales and profits.
After the sale, Intel will retain a roughly 88% stake in Mobileye, which it bought in 2018 for $15.3 billion.
Shares of Mobileye fell 2.7% to close at $42.37, leaving them up 21% this year. Intel fell 4.6% to $29.86 in New York, taking its gains to 13% in 2023.
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