Reuters reported SoftBank Group was looking to acquire the remaining 25 per cent of UK-based chip design company Arm it doesn’t directly control from the Japanese company’s Vision Fund 1.
The news agency wrote if discussions result in an agreement, major investors in the $100 billion Vision Fund 1 including Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala would reap a significant return.
SoftBank owns 75 per cent of Arm and is reportedly looking to list the chip designer on Nasdaq in September, with the sale expected to generate at least $8 billion.
Reuters explained acquiring the Vision Fund 1’s stake would mean SoftBank would list fewer Arm shares and likely retain a stake of between 85 per cent and 90 per cent.
If SoftBank doesn’t acquire the remaining stake, selling Vision Fund 1’s Arm shares in the stock market after the IPO could take at least one to two years, raising risks of a drop in the chip design company’s share price, Reuters wrote.
Various news outlets reported Apple, Samsung, Nvidia and Intel were interested in investing in the Arm IPO.
The Vision Fund 1 reported an investment gain in the latest quarter, recovering from huge losses booked by companies in its portfolio over the past 18 months.
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