Japanese investment outfit Softbank is to sell a 25% stake in UK tech firm ARM despite acquiring the company for $32 billion as recently as July 2016.
As reported by the Financial Times, the stake is being sold for $8 million to a Saudi-backed investment fund it’s creating.
The deal comes as part of the $100 billion pool for the Softbank-led Vision Fund, which aims to make investments in technology across the globe.
Softbank has already pledged $25 billion to the fund, while Abu Dhabi state-backed investment group Mubadala is said to be close to committing $15 billion to the initiative.
Other backers include Apple, Qualcomm and Saudi Arabia’s Public Investment Fund, the latter of which is believed to have contributed $45 billion.
The UK Government is thought to have been alerted to the deal but did not raise any concerns. It had already given its support for the sale of the UK firm last year.
Softbank’s acquisition of ARM was announced in July 2016. It came after Softbank sold assets such as its $10 billion stake in web giant Alibaba, Clash Royale developer Supercell for around $10 billion and its shares in Puzzle & Dragons publisher GungHo for $685 million.
It is thought the moves were designed to help cut Softbank’s $106 billion debts at the time.