UK Government Greenlights 49% Stake Sale in Sondrel

ROX, a major investor, has committed to purchasing over 56 million shares at a value of 10 pence each, generating £5.6 million for Sondrel. This move is part of a strategic refinancing plan for the company, which recently saw changes in its leadership structure with the stepping down of the CEO (see Sondrel CEO steps down as chip firm faces re-organization). The transaction required approval from the Secretary of State under the UK National Security and Investment Act 2021.

In a regulatory filing, Sondrel announced that shareholder approval for the scheme was obtained in May. With both regulatory and shareholder consent secured, the subscription shares are set to be listed on the Alternative Investment Market at 8:00 am on June 13, 2024. This development marks a significant milestone for Sondrel as it moves forward with its financial restructuring.

As part of the refinancing arrangement, existing loans extended by ROX will be converted into 28,746,000 new shares at an issue price of 10 pence upon the admission of the subscription shares to trading on AIM. This conversion, combined with the newly subscribed shares, will result in ROX holding a total of 85 million shares out of the 172,461,772 shares issued, representing a substantial 49.2% ownership stake in Sondrel.

Following the completion of the share subscription and restructuring process, Sondrel announced key changes in its leadership team. Nigel Vaughan, the current chairman, will step down upon the admission of the new shares. He will be succeeded by David Mitchard, while John Chubb will assume the role of CEO. These leadership transitions are expected to bring fresh perspectives and strategic direction to the company as it navigates through its reorganization phase.

Sondrel, a prominent player in the semiconductor industry, has a rich history of designing chips for leading technology brands such as Apple, Sony, Meta, Samsung, Google, JVC, Tesla, and Mercedes-Benz. The company's innovative chip designs have been integral to products ranging from smartphones and gaming consoles to automotive systems. With a global presence, Sondrel operates from offices in the UK, USA, China, India, and Morocco, catering to a diverse clientele seeking cutting-edge semiconductor solutions.