SoftBank to maintain stake in Arm after partial sale: Nikkei
[BENGALURU] SoftBank Group will keep a stake in its chip company Arm Holdings, even if it sells part of it to Nvidia or through an initial public offering, the Nikkei Asian Review reported.
The Japanese conglomerate is currently negotiating terms with Nvidia after receiving an approach last month, the report said, citing an unidentified source familiar with the matter, adding that it is possible that SoftBank would take stake in Nvidia after it bought Arm.
The report did not mention how much stake the company will retain in Arm.
SoftBank did not respond to a Reuters request for comment.
The Wall Street Journal reported last month that SoftBank was exploring options including a full or partial sale or public offering of Arm.
SoftBank acquired the British chip designer for US$32 billion in 2016, its largest-ever purchase, in part to expand into the internet of things, which connects everyday devices from traffic signals to refrigerators to the internet.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
In March, it unveiled a 4.5 trillion yen (S$58.40 billion) plan to buy back shares and reduce debt.
Under the plan the group has been selling down core assets including stakes in Chinese ecommerce giant Alibaba Group Holding and US wireless carrier T-Mobile US.
A sale would not be part of group's asset monetisation programme, Nikkei reported.
REUTERS
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Technology
Meta’s results are best viewed through rose-tinted AI glasses
'Harvesting data': Latin American AI startups transform farming
After long peace, Big Tech faces US antitrust reckoning
Tech’s cash crunch sees creditors turn ‘violent’ with one another
Tech millionaires chase billionaire tax shields with ‘swap fund’
Elon Musk’s Starlink profits are more elusive than investors think