Mobileye (MBLY) Slashes 15.5% on Intel Corp. Unloads $900-Million Stake

Mobileye Global Inc. (NASDAQ:MBLY) is one of the stocks drowned heavily. Are you holding any?

Mobileye Global declined by 15.5 percent week-on-week as investors turned sour on Intel Corp.’s disposition of $900 million stake in the company, as the latter embarks on a corporate restructuring initiative to claw back to profitability.

In a statement, Mobileye Global Inc. (NASDAQ:MBLY) said that Intel Corp.’s subsidiary, Intel Overseas Funding Corporation, planned to sell 50 million MBLY Class A common shares at a price of $16.5 apiece for a total of $825 million. It granted its underwriters an option to purchase an additional 7.5 million shares for a total of $123.75 million.

If fully subscribed, the transaction would be worth a total of $948.75 million.

Meanwhile, Mobileye Global Inc. (NASDAQ:MBLY) said that it would buy back more than 6.2 million shares upon the conclusion of the share sale at a price equal to the purchase price to be paid by the underwriters in the offering.

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Additionally, Intel expressed its intention to convert 50 million of its MBLY Common B shares to Common A shares, which it said it would hold at this time.

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Disclosure: None. This article is originally published at Insider Monkey.