Intel Corp to Sell $1.5 Billion Stake in Mobileye Global Inc

Intel Corp, the multinational technology company, has filed a regulatory document indicating its plan to offer 35 million shares of Class A common stock in Mobileye Global Inc. The stake sale is expected to amount to approximately $1.5 billion, according to the filing submitted on Monday.

Following the completion of the offering, Intel’s voting share in Mobileye, a prominent player in the self-driving technology sector, will decrease from the current 99.3% to approximately 98.7%. This move suggests Intel’s intention to diversify its holdings and potentially attract new investors to Mobileye.

The decision to sell shares comes amidst growing competition in the assisted driving market, particularly from chipmakers Nvidia Corp and Qualcomm Inc. Both companies are actively seeking to expand their presence in the self-driving technology space, posing a challenge to Intel’s market dominance.

Mobileye, which boasts renowned customers such as BMW, Nissan, and Volkswagen, successfully listed on the Nasdaq stock exchange last year after raising $861 million in its initial public offering. The company has established itself as a leading provider of advanced driver-assistance systems and autonomous driving solutions.

To facilitate the share sale, Intel has enlisted the services of Goldman Sachs & Co and Morgan Stanley, who will act as joint book-running managers for the transaction. The involvement of these reputable financial institutions further underscores the significance of the offering and highlights investor interest in Mobileye’s future prospects.

As the autonomous driving industry continues to evolve, this strategic move by Intel aims to position both companies for growth and increased competitiveness in a rapidly expanding market.

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