Arm investigates suspicious financial activity at its Chinese subsidiary

Arm investigates suspicious financial activity at its Chinese subsidiary

Arm continues to try to contain its Chinese unity, which has been identified as fraudulent. The Telegraph reports a new investigation into suspicious payments to the senior management of the Celestial Empire-sponsored joint venture Arm China. It should be noted that this story could affect NVIDIA’s acquisition of Arm, which is currently under investigation by regulators in several countries.

Image source: Arm China

Image source: Arm China

The news comes after Arm announced in its annual report that it had received information about suspicious payments. Arm China is still led by Allen Wu, who has failed to remove the arm since attempting to regain control of Chinese unity in 2020.

Arm explains that the suspicious payment situation is under his control and “Arm China’s board of directors is currently in the process of resolving certain disputes with a senior executive“Certain disputes” relate to the fact that Allen Wu blocked a vote by Arm China’s board of directors to remove him from office in 2020. It appears that Wu has complete control of the joint venture due to loopholes in China He was proven right, which resulted in his hiring and firing workers without the approval of Arm headquarters, and Arm China has redoubled its efforts in technology development that China is directly interested in.

Key to NVIDIA’s acquisition of Arm, the UK chipmaker said in a report that the situation was preventing it from accessing Arm China’s accounts for financial audits and assessing the current value of its 49% stake in the joint venture, which is preliminary estimated at $ 827 million. … The remaining 51% of the shares are held by the Chinese state-owned company Hopu Investments.

Arm says it continues to work with all major parties to resolve disputes related to Arm China. It probably is, but the regulators investigating the merger with NVIDIA are unlikely to be happy with the current state of affairs and Arm’s inability to fully represent its international business.

About the author

Robbie Elmers

Robbie Elmers is a staff writer for Tech News Space, covering software, applications and services.

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