Termination of Agreement to Sell All Shares in Subsidiary Arm and Preparation for Arm Public Offering
As announced in “Sale of All Shares in Subsidiary Arm Limited” dated September 14, 2020, SoftBank Group Capital Limited, a wholly owned subsidiary (“SBGC”), and SoftBank Vision Fund 1 (“SVF1”) entered into a definitive agreement (the “Agreement”) with NVIDIA Corporation (“NVIDIA”), a U.S.-based semiconductor manufacturer, on September 13, 2020 (U.S. time), whereby SoftBank Group Corp. (“SBG”) would sell all of its shares in wholly owned subsidiary Arm Limited (“Arm”) held by SBGC and SVF1 to NVIDIA (the “Transaction”). However, NVIDIA and SBG have agreed to terminate the Agreement on February 8, 2022 because of significant regulatory challenges preventing the consummation of the Transaction, despite good faith efforts by the parties.
In accordance with the terms of the Agreement, the deposit of USD 1.25 billion*1 (JPY 143.8 billion*2) received by SBGC at the time of signing is non-refundable and therefore such amount will be recognized as profit in the fourth quarter of the fiscal year ending March 31, 2022.
SBG and Arm will start preparations for a public offering of Arm within the fiscal year ending March 31, 2023. Arm is a global leader in the development of semiconductor technology and is central to the pervasive computing that is shaping today’s connected world. Arm’s processor technology is the world’s most widely licensed and deployed semiconductor design of its kind and is used in virtually all smartphones, the majority of tablets and digital TVs, and a significant proportion of all chips with embedded processors. Since being acquired by SBG in 2016 Arm has increased investment in R&D, expanding its product portfolio and addressable markets, and is now gaining share in fast growing markets such as AI, IoT, cloud, autonomous driving, and the Metaverse. This has resulted in Arm’s revenues and profits growing strongly over the past two years and provides a foundation for future growth.
24.99% is attributable to SVF1 in accordance with the ownership ratio of Arm shares
JPY equivalent based on an exchange rate of USD 1.00 = JPY 115.00
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