SoftBank aiming to buy back Arm stake ahead of high-stakes New York IPO
SoftBank is reportedly in talks to buy back the remaining 25 per cent stake in Cambridge-based chip designer Arm its own investment unit established in 2017.
In a strategic move ahead of Arm’s impending float in New York, Japanese tech company SoftBank is looking to regain Vision Fund’s quarter stake in order to fully own the company, according to Reuters.
SoftBank initially bought Arm in 2016 for $32bn (£25.2bn) and sold a portion of its stake to Vision Fund for $8bn (£6.3bn) in 2017.
It could also help provide quick returns for Vision Fund investors such as Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala, who have weathered setbacks from the recent investment wobbles.
SoftBank and Arm did not immediately respond to City PM’s request for comment.
Arm is currently gearing up for an initial public offering on the Nasdaq next month, hoping to get a valuation of $60bn (£47bn) to $70bn (£55bn).
It is the latest UK firm looking to relocate from London to New York. This morning, it was also reported that pollsters YouGov were contemplating a US move, with its chief warning “the markets are better.”
Amazon is the latest company to join a line of tech giants – estimated to be around 11 – potentially seeking to become an anchor investor in the British chip innovator.
If successful, the IPO could rejuvenate SoftBank’s financial standing after facing losses from risky bets on tech startups such as WeWork and Didi Global.
However, last week SoftBank reported that Vision Fund has finally become profitable after five consecutive loss-making quarters, thanks to investor hype around artificial intelligence.