Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

SoftBank Said to Have Bought Vision Fund’s Stake in Arm for $64 Billion

Share

SoftBank Group has acquired the 25 percent stake in Arm it does not directly own from its Vision Fund unit in a deal that values the chip designer at $64 billion (nearly Rs. 5,32,350 crore), according to people familiar with the matter. 

Details of the transaction will be unveiled on Monday when Arm makes public the filing for its blockbuster stock market launch, the sources said, requesting anonymity as these discussions are confidential. 

SoftBank is now expected to sell fewer Arm shares in the initial public offering (IPO) and would likely be retaining a stake of as much as 90 percent in the company, according to the sources, adding that Arm’s capital raising from the IPO would be less than the range of $8 billion (nearly Rs. 66,550 crore) to $10 billion (nearly Rs. 83,180 crore) it was earlier planning. 

SoftBank is currently in talks to list Arm at a valuation of $60 billion (nearly Rs. 4,99,100 crore) to $70 billion (nearly Rs. 5,82, 250 crore) in the IPO, which is expected to happen in September, Reuters has previously reported. SoftBank, which took Arm private for $32 billion (nearly Rs. 2,66,170 crore) in 2016, sold a 25 percent stake in the company to Vision Fund 1 (VF1) for $8 billion in 2017. 

The deal removes a potential overhang for Arm’s stock following the IPO, because VF1 had initially planned to cash out its stake in the stock market over time following the listing, while SoftBank has indicated it will remain a long-term strategic investor. 

Reuters was first to report earlier in August that SoftBank was in talks to buy the stake from the Vision Fund. The Wall Street Journal reported the financial terms of the deal earlier on Friday. 

The deal also delivers a major victory for VF1’s biggest investors, including Saudi Arabia’s Public Investment Fund and Abu Dhabi’s Mubadala. They nursed losses after many of SoftBank’s bets on startups such as workspace provider WeWork Inc and ride-sharing firm Didi Global soured.

Arm’s plans to go public come as the US IPO market shows early signs of a recovery after a barren spell that lasted a year and a half. Grocery delivery service Instacart and marketing automation firm Klaviyo are also expected to go public in New York in September, the sources said. 

© Thomson Reuters 2023


Affiliate links may be automatically generated – see our ethics statement for details.