SoftBank plans to keep a controlling stake in Arm after the UK-based semiconductor company’s planned initial public offering, Bloomberg reported, citing people familiar with the matter.
The Japanese conglomerate has decided to sell only a small part of its Arm shares in the IPO, which is expected to occur in the first quarter of next year. Sources said that the company aims to get higher valuations for the rest of the shares in the future.
SoftBank is also raising an US$8 billion term loan to prolong the lifetime of the UK-based company and wait for better market conditions.
In 2020, SoftBank planned to sell Arm to global chip designer Nvidia for US$40 billion, but the deal fell through due to regulatory issues.
See also: The leading Asian tech players eyeing an IPO in 2022 and beyond
Editing by Miguel Cordon and Jaclyn Tiu
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