Multinational conglomerate SoftBank Group Corp. has indefinitely halted its plans for the initial public offering (IPO) of British chip technology company Arm Ltd. in London amidst growing political turmoil in the U.K.

For the uninitiated, Arm Ltd. provides intellectual property in chips that influence some of the leading smartphones in the business, including Apple Inc. and Samsung Electronics Co. Ltd.

SoftBank had acquired Cambridge-based Arm in a deal that was worth USD 32 billion in 2016, which was to be followed by its sale to Nvidia Corporation in 2020. However, further developments in this arrangement were shelved due to hindrances in the regulatory framework.

Trade analysts believe that this decision to temporarily pause the listing by SoftBank is an immediate reaction to the exit of Britain’s Investment Minister Gerry Grimstone as well as Digital Minister Chris Philip right after Prime Minister Boris Johnson-led government met its untimely downfall earlier this month.

Incidentally, both officials had played key roles in discussions with the Japanese investing firm that could have paved the path for Arm’s first IPO in the British capital. However, under the present circumstances, SoftBank is expected to choose the straightforward route of U.S listing for its chip-manufacturing subsidiary

Elaborating on the same, SoftBank’s founder and CEO, Masayoshi Son has asserted that he is in favor of a U.S. listing, leveraging on the fact that many of their clients are based in the country. The executive added that the United States has a deeper investor base and an attractive valuation that will be beneficial for the company’s profits in the forthcoming years.

However, SoftBank would still be looking forward to unearthing prospects in the United Kingdom once the political upheaval comes to a rest, Masayoshi Son claimed.

Source Credits –

https://www.moneycontrol.com/news/world/softbank-halts-plans-for-arms-london-ipo-8847451.html