By the end of this year, the Japanese company SoftBank, which has owned the British developer of processor architectures Arm since 2016, will conduct an IPO of this developer on the stock exchange in order to raise funds in the amount of $ 8-10 billion. Rumors surfaced this week that Intel was interested in buying a large stake in Arm.
First reported by the agency Reuters citing his own sources, he announced negotiations between Intel and SoftBank on this issue, then confirmed this information and Bloomberg. According to the latest source, Arm was also in talks with other potential IPO subscribers who could own large blocks of shares in the British holding company. Recall that Arm was preparing to list the shares on the US stock exchange Nasdaq and filed an application in April, hoping to complete the offering by the end of the year.
The structure of Intel’s investments is not specified, the parties to the probable transaction do not comment on the situation. A positive outcome of the negotiations is also not guaranteed, so Intel could possibly give up this idea entirely. If the talks are actually positive, Intel could appear in the investor prospectus prepared by Arm before the IPO and thus become the so-called “anchor investor”. In such cases, anchor investors typically buy $100 million to $200 million worth of stock in the company.
Keep in mind that Intel and ARM have recently converged technologically, as the former has expressed a willingness to provide the latter’s customers with developer tools to build processors using the ARM architecture that Intel is based on Contract basis can produce in the future. Independent estimates suggest Arm’s capitalization during the IPO could range from $30 billion to $70 billion, but SoftBank has expressed its desire to remain the UK holding’s main shareholder.