After an extended period of expectation that Intel was about to sell shares in Israeli advanced driving assistance systems (ADAS) company Mobileye Global Inc (Nasdaq: MBLY), last night it finally happened. Intel, which holds an 88% stake in the company, announced that it will sell shares but would continue to hold control of Mobileye.
In trading yesterday Mobileye's share price rose 1.25% to $18.64, giving a market cap of $14.95 billion. In afterhours trading after the announcement, the share price is down 0.70%.
Mobileye announced a secondary offering in which it will sell 45 million Class A common stock shares. The price of the sale has not yet been closed. Estimates are that Intel is selling an 8% stake in the Israeli company for a total of about $1.2 billion, which would leave Intel with an 80% holding in Mobileye.
Mobileye announced that it will purchase shares worth $100 million in the offering. Intel is also granting the underwriters a 30-day option to purchase up to an additional 6.75 million shares of Mobileye’s Class A common stock.
Goldman Sachs and Bank of America Securities are acting as joint lead book-running managers for the proposed offering.
Intel has been in a cash crunch for the past year, but has not sold Mobileye shares during its difficult period so far. In April, it sold control of its subsidiary Altera to Silverlake at a company valuation of $8.75 billion.
Published by Globes, Israel business news - en.globes.co.il - on July 9, 2025.
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