According to reports, the Japanese Softbank Corp will sell 25% stake in ARM to its $100 billion investment fund Vision Fund. This part of the equity value of approximately $8 billion.
According to two people familiar with the decision as the lead investor Softbank Fund seeks to achieve its goal of financing, Abu Dhabi government funded investment group Mubadala support. Allegedly, Mubadala hopes that the fund has a portion of ARM's equity.
Informed sources said that the two sides are close to an agreement, Mubadala intends to fund the $15 billion investment to help Softbank closer to fulfilling completed $100 billion financing for Vision Fund funds target.
Softbank and ARM declined to comment on the news.
The fair is the first important trends in Vision Fund, the Fund seeks to Softbank billionaire Sun Zhengyi brought money to his company and also represent a small part of the external investors.
In July last year, took a few weeks in Europe in the UK after the referendum, Softbank agreed to $32 billion 400 million acquisition price ARM. The deal meets Sun Zhengyi's desire to own a chip design company, in his view, the chip design company will play a very important role in the Internet of things and networking era.
As part of the deal, Softbank reached a series of agreements binding, to show its commitment to the UK, including the next 5 years the number of ARM employees doubled the British agreement.
The sale of ARM's stake to Vision Fund fund, play the role of global trading Sun Zhengyi could provoke more scrutiny, especially considering that he is now the investment through a fund for investors.
The Vision Fund fund has a financing target of $100 billion, and its development is very rapid, which can be said to represent a new frontier for venture capital and private equity.
In order to complete the first round of fund-raising fund, Sun Zhengyi has been actively seeking deals. According to a source said, sharing office to Softbank company WeWork invested $3 billion in negotiations, the valuation of about $17 billion; if so, the amount of shares will also be sold to the fund.
Softbank satellite startup OneWeb last year to $1 billion, which is committed to the global remote areas to provide Internet connectivity services. In February, Softbank announced plans to invest $1 billion 700 million to OneWeb and another satellite company merged with Intelsat, the premise is that it can convince Intelsat bondholders agreed to the deal. The equity proceeds from the transaction will also be sold to Vision Fund.
However, Softbank recently spent $3 billion 300 million acquisition of back alternative Asset Management Co Fortress Investment Group, will not be sold to the fund.