LONDON (Alliance News) - Toumaz Ltd shares dropped late Friday after it said fellow London-listed company Imagination Technologies PLC has sold a substantial stake in the company.
Toumaz shares were down 25% to 2.24 pence per share on Friday afternoon whilst Imagination Technologies shares were down 1.6% to 156.00p.
UK-based semi-conductor firm Toumaz said Imagination Technologies sold 175.3 million shares in the company through a placing to new and existing shareholders. Those shares represent a 10.3% stake in Toumaz. It didn't provided the price at which the shares were sold.
Toumaz did not confirm what stake, if any, Imagination Technologies has in the company following the transaction, but according to the company's website, Imagination Technologies held just that 10.3% stake in Toumaz back in September.
"Toumaz will continue to work in partnership with Imagination on existing commercial arrangements," said Toumaz in a statement.
"The demand from both new and existing shareholders for this placing demonstrates the support for Toumaz's strategy. We are glad to report that our next generation connected audio solution, incorporating Google Cast, is on course for release in the middle of 2016. The strategic review of Sensium Healthcare is progressing as expected and the board remains confident that this process will complete in mid-2016," said Toumaz Chief Executive Anthony Sethill.
Imagination Technologies, which licenses silicon and software for the entertainment and consumer industries, has not released a statement concerning the transaction.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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