Exclusive: SoftBank in talks to buy Vision Fund's 25% stake in Arm -sources

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SoftBank Group Corp is in talks to acquire the 25% stake in Arm Ltd it does not directly own from Vision Fund 1 (VF1), a $100 billion investment fund it raised in 2017, according to people familiar with the matter, potentially delivering a win for investors who have waited years for strong returns.

The alternative -- letting VF1 sell its Arm shares in the stock market over time following the initial public offering -- would typically take at least one to two years given the size of the stake. It would also be more risky for the fund's investors since it is possible that Arm's shares could drop following the IPO.

A big windfall for VF1 investors could boost SoftBank's chances of tapping them for capital again in the future. It has been consideringSon, who has hired investment bank Raine Group to advise SoftBank on the negotiations, has recused himself from VF1's deliberations on the matter so that the fund makes a decision independently in the interest of its investors, the sources said.

The exact valuation for Arm that the two sides are discussing for their transaction could not be learned, and the sources cautioned that it is possible that no agreement will be reached.

 

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