Arm will transfer its shares in the renegade China joint enterprise to a special-purpose vehicle controlled by parent company SoftBankAccording to reports by The Financial Times BloombergOn Tuesday, the newspaper cited persons familiar with this matter.

According to The Financial Times, Arm holds 47.3% of Arm China’s equity. Bloomberg reports that Arm will be able to hold less than 20% in Arm China after the share transfer. According to Bloomberg, Arm will treat Arm China the same as any license-paying customer and not a fully managed subsidiary.

If it proceeds, then the transfer of shares could help SoftBank. float the British chip designer in New YorkThe next year will be even better failed to sell the companyTo Nvidia40 billion

Arm China has its headquarters in Shanghai and is managed by Hopu Investments, an investment firm in China. Allen Wu (former chief executive officer) of Arm China took over the company after SoftBank acquired Arm for $32 Billion in 2016. Wu was dismissed by the board of Arm China in 2020 because of conflicts of interests. However, Wu has continued to lead the company every day and it is reported that he refused to quit.

SoftBank declined to comment, and Arm did not respond immediately to CNBC’s request.

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