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Recent press speculation regarding requirement by UK Government to divest 80.2% shareholding in FTDI
FTDI is aware of certain media reports concerning an order by the UK Government requiring a certain shareholder in FTDI to divest 80.2% of its shares in FTDI (the “UK Government Order”) and certain FTDI products having been sold to Russia. These media reports allege that the requirement to divest was linked to such sales into Russia. FTDI does not agree with this conclusion and does not believe that there is any factual basis for this allegation. As previously stated, FTDI sells products globally to a wide variety of clients and always strives to comply fully with applicable law and regulation (including applicable UK sanctions and export control laws). FTDI has never knowingly sold any of its products in breach of such laws or sanctions and FTDI does not condone or support any use of its components in violation of human rights. FTDI takes seriously any suggestion to the contrary. Neither the UK Government Order nor any communications between FTDI and the UK Government indicate or suggest that the decision reached by the UK Government in the UK Government Order relates to the baseless allegations referred to above.
In respect of the UK Government Order more generally, FTDI is extremely disappointed by the UK Government Order, which it believes is disproportionate and unnecessary, and FTDI does not accept the potential national security concerns raised by the UK Government Order. Despite the fact that the UK Government has never explained the basis for its concerns related to national security, FTDI proposed far-reaching remedies which would have been sufficient to address any such concerns in a proportionate manner. The UK Government did not engage in any dialogue with FTDI on its proposals. Nevertheless, FTDI intends to fully comply with the terms of the UK Government Order whilst it considers all potential courses of action that may be available to it.
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