[Asia Economy Reporter Jeong Hyunjin] UK Prime Minister Liz Truss is reportedly planning to meet with executives from Japan's SoftBank next week to persuade them to conduct the initial public offering (IPO) of the British semiconductor company ARM on the London Stock Exchange. This is interpreted as an effort to resume discussions that were halted amid turmoil in the previous cabinet led by Boris Johnson, which had been in contact with SoftBank.
According to major foreign media on the 15th (local time), Prime Minister Truss and UK Chancellor of the Exchequer Kwasi Kwarteng are preparing to hold talks with SoftBank executives after the mourning period for the death of Queen Elizabeth II, which lasts until the 19th.
SoftBank acquired ARM in 2016 for $32 billion (approximately 44.8 trillion KRW). In 2020, SoftBank agreed to sell ARM to the US semiconductor company Nvidia, but the deal was canceled due to opposition from regulatory authorities. Since then, SoftBank has been pushing for an IPO targeting March next year.
When SoftBank Chairman Masayoshi Son announced plans to list ARM on the US New York Stock Exchange, the UK government, led by Prime Minister Johnson, contacted SoftBank and proposed listing on the London Stock Exchange. For the UK, having a major technology company listed on the London Stock Exchange was important for market influence and credibility. ARM was one of the UK's core technology companies at the time of acquisition in 2016, and most of its operations still remain in the UK.
In response to the UK government's persuasion, SoftBank initially planned to pursue an IPO only in New York but has begun considering a dual listing in New York and London. It is reported that SoftBank prioritizes a single listing in New York first. However, a source familiar with the UK government's plans told foreign media that the Truss administration appears to be engaging with SoftBank with the possibility that the company's listing decision could change.
The source stated that SoftBank has been closely monitoring the Conservative Party leadership race and is preparing for what benefits might be offered in London. There are opinions that time is tight, as SoftBank must make a decision within the next two months to proceed with the planned IPO in the first quarter of next year.
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