The High Court has dismissed an application by FTDI Holding Ltd., a Chinese state-linked investment firm, for interim relief to delay the sale of its 80% stake in British semiconductor company over national security concerns.
This decision came after the firm’s initial acquisition of the stake in December 2021, which the Chancellor of the Duchy of Lancaster subsequently reviewed, before ordering divestment in November 2024.
The Claimant issued a claim challenging the government’s order, arguing, amongst other things, that it was made outside statutory time limits, lacked sufficient explanation, and infringed on its human rights by effectively expropriating its property.
The decision of the Divisional Court (Singh LJ and Chamberlain J), handed down on 17 January, emphasized that national security concerns outweighed any financial harm FTDI might face from the immediate enforcement of the divestment order.
Richard O’Brien KC of 4 New Square Chambers and Karl Laird of 6KBW act for the Chancellor of the Duchy of Lancaster, instructed by the Government Legal Department. FTDI Holding Ltd is represented by James McClelland KC and Yaaser Vanderman of Brick Court Chambers.
The case is set to undergo a full judicial review later this year.
The full judgment can be read here.