The takeover of Canyon Bridge Capital of Imagination Technologies has received approval from shareholders, hours after the founder of the Chinese-backed equity firm was accused of insider trading in the United States.
The charges that were made against Benjamin Chow is linked to the blocked takeover of Lattice Semiconductor, a US chipmaker, with the the Manhattan US Attorney and the FBI claiming that Chow conspired to perform securities fraud by providing information to an unnamed business associate and friend. Donald Trump, the President of the US, had blocked the said deal over national security concerns.
Joon Kim, the acting US Attorney for the Southern District of New York, stated: “As alleged, Benjamin Chow tipped his friend about a potential acquisition of Lattice Semiconductor Corp by private equity firms he managed, including one based in China.
“Mr Chow’s illegal tips resulted in multimillion-dollar profits for his friend and business associate.”
Lattice refused to comment.
A separate statement by the Securities and Exchange Commission earlier in 2017 identified the associate as Michael Yin, who purportedly made “a total of at least approximately $5m in profits” from his familiarity of the deal. A lawyer for Yin did not immediately answer to requests for comment.
According to a spokesperson for Canyon Bridge, Chow rejects the accusations and “intends to defend the case in a court of law.”
“We are aware of the indictment charging Mr Chow with violations of US securities laws,” said the spokesperson.
“We are focused on completing the planned acquisition of Imagination Technologies. Canyon Bridge is committed to continued investment in enabling technology companies to reach their full long-term growth potential.”
Currently, Canyon Bridge, which is not subjected to any investigation, is in the process of acquiring Imagination, a chip designer that is based in Kings Langley, Hertfordshire. The takeover deal obtained approval from 99pc of the shareholders who voted on Tuesday. Next Monday, a court hearing to authorise the takeover will take place, following which Imagination requires to de-list from the London Stock Exchange.
Imagination refused to comment on the charges.