This investment has been made in the form of a loan that can be converted into equity in Imagination in the future. Imagination is owned by a private equity consortium with strong links to the Chinese government.

Previously, Imagination was listed on the LSE under the IMG ticker; however, it was delisted in 2020 when a controversial £550m ($710m) deal saw it bought by investors from China. That caused the intervention of a Foreign Affairs Select Committee amid worries about national security.

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The fact that the Fortress backing is for a minority shareholding means this new transaction is unlikely to attract the same level of scrutiny. The full terms of the deals haven’t been released. This is just the latest in a line of investments that have seen Mubadala pump billions of dollars into the fast-growing semiconductor technology sector.

Canyon Bridge is expected to remain as the majority owner of the business. This private equity firm is registered in the Cayman Islands, and its main backer is China Reform, which is heavily backed by the Chinese state.

Ray Bingham is the chairman of Imagination, and he stated:

This investment comes with a shared commitment to drive Imagination’s innovation in GPU, CPU and AI and to help us accelerate growth, drive significant advancements and deliver unparalleled IP value to customers.

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