Shulou(Shulou.com)11/24 Report--

CTOnews.com August 13 news, last week there was news that SoftBank is preparing to send its chip design company Arm to Nasdaq IPO next month, valuation is expected to be between 60 billion and 70 billion US dollars (currently about 434.4 billion to 506.8 billion yuan).

SoftBank Group is in talks with Vision Fund 1 (VF1) to acquire its 25 percent stake in Arm, according to people familiar with the matter.

CTOnews.com Note: SoftBank Group currently controls about 75% of Arm's shares, with the remaining 25% held by SoftBank's Vision Fund. Vision Fund 1 is a $100 billion investment fund SoftBank raised in 2017.

If a deal is negotiated, the Japanese tech investment firm could generate a windfall for VF1 investors, including Saudi Arabia's Public Investment Fund and Abu Dhabi's Mubadala Investment Company.

They also had the option of having vf1 sell Arm shares gradually through the stock market after the IPO. However, due to the large size of the shareholding, this operation will take at least one to two years to complete. It's also riskier for the fund's investors, as Arm's share price could fall after the IPO.

Sources said Son had hired Raine Group as an investment bank adviser to advise SoftBank on negotiations. In order to avoid conflicts of interest, Son has withdrawn from VF1's consideration of the matter so that the Fund can independently make decisions in the interests of investors.

A source added that Vision Fund 1's Investment Committee and SoftBank's Investment Advisory Committee are handling the negotiations. Both committees are represented by the Fund's investors. The exact valuation of Arm for the deal being discussed is unclear, although sources warn that a deal may not be reached.

If an agreement is reached, SoftBank will sell a smaller number of Arm shares in the IPO and likely retain 85 to 90 percent of its stake, according to people familiar with the matter.

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