SoftBank confirms sell-off of ARM China stake
The move had been previously reported (see Report: Control of ARM’s China business passes to JV) and was thought to include China Investment Corp:, Silk Road Fund, Singapore’s Temasak Holdings, ARM, Hopu Investment Management and Shum Yip Group.
SoftBank has now provided more detail in that it has said that ARM will sell 51 percent of its equity interest in Arm China for US$775.2 million to the investors. However, it did not confirm the participants, saying the names were not disclosed at the request of the relevant parties. It said the transaction was expected to close in June 2018.
Nonetheless the result will be that ARM will not control the company that operates in China to collect royalties on ARM IP.
SoftBank said the rationale behind the deal was that by relinquishing control and taking a reduced royalty by way of dilution, the joint venture could locally license ARM semiconductor technology to Chinese companies and locally develop ARM technology in China and that this would expand ARM’s opportunities in the Chinese market.
SoftBank also stated: “ARM will continue to receive a significant proportion of all licence, royalty, software and services revenues arising from ARM China’s licensing of ARM semiconductor products.”
Related links and articles:
News articles:
Report: Control of ARM’s China business to pass to JV
China’s ARM twist underlines strategic nature of tech
Reports: ARM agrees to create Chinese IP firm
ARM-SoftBank: Selling at the top or buying at the bottom?
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