Saudi Arabia technology fund hungry for ARM
According to a recent report from Financial Times, SoftBank Group which bought ARM Holdings Plc
in an all-cash deal less than a year ago plans to sell 25 percent of its shares to a technology fund SoftBank is creating with Saudi Arabia.
According to the report, the Japanese company would receive about $8 billion for the shares, roughly a quarter of the original acquisition value disclosed a few months ago (£24.3 billion or about $32.25 billion).
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.
Reportedly, the biggest outside investor in the Vision Fund is Saudi Arabia’s Public Investment Fund which said last year it would contribute up to $45bn, followed by Abu Dhabi state-backed investment group Mubadala Development Co., backing the fund with $15 billion and eager to own a portion of Arm as part of the deal.
Others potential investors could include Apple, Qualcomm and Oracle founder Larry Ellison, as well as Taiwanese electronics manufacturer Foxconn.