FT: SoftBank to Place ARM Holdings Stake in Vision Fund
- Author: Leroy Wright Mar 08, 2017,
Mar 08, 2017, 18:28
On top of this transaction, SoftBank would also contribute $25 billion to the new technology fund dubbed the SoftBank Vision Fund, targeting the $100 billion mark.
SoftBank pledged to embark on a major recruitment drive, doubling ARM's 1,600-strong United Kingdom workforce, while keeping its headquarters in Cambridge as part of its assurances over the takeover.
Moving part of SoftBank's stake in ARM to the Vision Fund is seen as a move to secure investment from Abu Dhabi's state-backed investment group Mubadala.
On Wednesday, a Mubadala spokesman told Reuters that the talks were continuing and that the Abu Dhabi group hoped to resolve remaining issues in the next couple of days.
Both ARM and Softbank have refused to comment on the reports.
SoftBank is also contributing $25bn - including the Arm stake, with smaller investments confirmed by Apple, Taiwan's Foxconn and Qualcomm and Oracle founder Larry Ellison.
The transaction would be the first significant move by the Vision Fund, which is meant to give Masayoshi Son, the deal-hungry billionaire who made SoftBank into a global internet and telecoms powerhouse, the firepower to pursue his blend of investing on behalf of his company and a small group of outside backers. At the time, Prime Minister Theresa May said the acquisition was in the country's national interest. Arm's founder, Hermann Hauser, described the deal as one of the "sad and unintended consequences" of leaving the EU.
SoftBank made several commitments as part of the deal, including pledging to keep ARM's headquarters in Cambridge and agreeing to at least double the number of its staff over the next five years.
Mubadala said in January that it was in talks with SoftBank to invest in the fund.
"It will be a significant investment - we are working through it", the spokesman said, adding that an announcement was likely to be made around the middle of next week. Those deals are set to be offered to the Vision Fund.