Mellemox's largest shareholder board sells the entire stake in front of Nvidia Deal Close

Text size

Activist security fund The control value is not waiting for
Nvidia

(ticker: NVDA) to complete the acquisition of
Mellanox

Technologies (MLNX) to realize their investment in the latter company.

On Tuesday, the board revealed that its subsidiaries sold all the 3.1 million Mellanox shares they held on Monday to a total of $ 372 million. The fund sold at an average price of $ 118.47 per Mellanox share, according to a form Starboard filed with the Securities and Exchange Commission. The sales price is below $ 125 per share price Nvidia agreed to pay for the solution and service provider for server interconnection and storage, but the Starboard has continued to perform well.

Starboard listed in a filing last month that it had paid a total of about $ 152 million for the Mellanox stock, which means it distributed $ 220 million in sales. Prior to the sale, it was Mello's largest shareholder with an ownership interest of 5.9%.

The leader board did not immediately return a request for comment, but the fund noted in its last submission that it was "grateful for the actions taken" by Mellanox management and directors "to maximize the value of all shareholders in the Issuer and support the proposed acquisition of the Nvidia issuer. "

Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin .