Intel Received Israel Tax Ruling for Mobileye Deal

16 July, 2017

Intel and Mobileye have agreed to extend the offering period of the tender offer to July 28, 2017. The transaction is currently expected to close during the third quarter of 2017

Intel-Autonomous-Driving-Cars

Intel Corporation announced that the Israel Tax Authority has issued “an acceptable tax ruling” with respect to the all cash tender offer to purchase all of the outstanding ordinary shares of Mobileye by Intel. The tender offer is being made Cyclops Holdings, a wholly owned subsidiary of Intel that was later converted to Cyclops Holdings. When the deal is completed, Intel is expected to pay approximately $15.3 billion for Mobileye.

BMW, Intel and Mobileye Autonomous Driving Car
BMW, Intel and Mobileye Autonomous Driving Car

Following the receipt of the tax ruling and the latest resolutions at the general meeting of Mobileye shareholders in June, the minimum number of Mobileye shares that must be validly tendered has been lowered from 95% to 67% of Mobileye shares. Intel also announced that Intel and Mobileye have agreed that Cyclops will extend the offering period of the tender offer, from the original date of July 20, to July 28, 2017. The transaction is currently expected to close during the third quarter of 2017.

Mobileye shareholders who have already tendered and not withdrawn their ordinary shares of Mobileye do not have to re-tender their shares or take any other action as a result of the extension of the expiration date of the tender offer. Now Intel and Mobileye are waiting for a regulatory approval from the Korean Fair Trade Authority. Earlier this month the deal received the approvals of the German Federal Cartel Office and the Austrian Federal Competition Authority. Intel plans convert Mobileye from a public company to a private company, and to delist its shares from the NYSE.

Mobileye from Jerusalem, Israel, is one of the leaders in the development of computer vision and machine learning solutions for Advanced Driver Assistance Systems and Autonomous Driving. Its proprietary software algorithms and EyeQ chips perform detailed interpretations of the visual field in order to anticipate possible collisions with other vehicles, pedestrians, cyclists, animals, debris and other obstacles. Mobileye’s products are or will be integrated into car models from more than 25 global automakers.

On May 2017, BMW Group, Intel, Mobileye and Delphi announced a cooperation project to jointly deploy solutions to the broader OEM automotive industry and potentially other industries. Delphi has already provided a prototype compute platform to the BMW Group and is working together with Intel and Mobileye in the areas of perception, sensor fusion, and high performance automated driving computing. Delphi’s role will be the integration of the solution delivered by BMW Group, Intel and Mobileye into OEM vehicle architectures. Delphi may also provide the hardware components such as sensors and applications for differentiation.

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Posted in: Automotive , Autonomous Car , News

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