SoftBank will assess relisting chip technology company Arm when it comes to cash in the assets held in its Vision Fund investment pot, a senior executive reportedly told an investor conference.
Financial Times (FT) cited comments from SoftBank senior executive corporate officer Yoshimitsu Goto, who said an IPO of the Arm stake set to be held in the SoftBank Vision Fund was a long-term possibility.
SoftBank Vision Fund is an investment fund backed by Saudi Arabia’s Public Investment Fund and a number of other companies. The goal is to raise a total of $100 billion: as of May 2017 the figure stood at $93 billion. The fund is expected to have a 12 year lifespan, after which it is scheduled to sell-off assets and provide investors with a return.
In March 2017, SoftBank agreed to transfer 25 per cent of its Arm business to the fund in a bid to attract investors. The transaction, however, is yet to complete as it is still going through a US Committee for Foreign Investment approvals process.
During the lifecycle of the fund, SoftBank will also buy and sell assets. Sources told FT relisting the Arm stake was one of a number of options for the share and was unlikely to take place – if at all – for another five to seven years.
SoftBank acquired UK-listed Arm for £24 billion in 2016, a move hailed at the time by SoftBank CEO and chairman Masayoshi Son (pictured), as providing a “key pillar of SoftBank’s growth strategy going forward”.
Arm is part of the Japan-headquartered company’s continued effort to invest in new technologies and gain a central role in the IoT ecosystem.