Oliver Matthews, according to CLSA, said the current interest rate environment could support the Japanese conglomerate SoftBank Group’s long-term investment strategy; It seeks to acquire early-stage tech companies with low ratings. Because potential purchase prices are now falling as investors prepare for higher rates, SoftBank might get a better deal.
Nonetheless, he acknowledged that the drop in ratings of the growing companies listed this year clearly opposed the Japanese conglomerate’s shares. Evaluate growing firms in sectors such as tech; Losses at higher interest rates; Because it makes their future income less attractive.
SoftBank’s Vision Fund is a substantial venture capital firm that invests in everything from Uber to tech titans to Alibaba. As a result of the ongoing regulatory crackdown on Beijing’s domestic technical sector, SoftBank had to reduce its stakes in companies like Uber to cover this loss. Arm’s organized IPO is also an impetus for SoftBank Group stocks.
SoftBank Plans
Shares of SoftBank Group rose nearly 6% in Japan on Wednesday. After the company announced that it was looking for a potential listing for its Arm unit, part of this profit was later reduced. In the morning trading on Thursday, stocks fell by about 3%. The Japanese conglomerate originally planned to sell Arm to Nvidia. However, the sale failed due to regulatory control.
The deal was still announced in 2020 and valued at $40 billion in cash and Nvidia shares. Once the sale is over, Arm is ready to make its public debut during the fiscal year ending March 31, 2023. It wasn’t easy to get two-thirds of Nvidia’s stock price when they dealt with Nvidia. SoftBank was very, very prosperous. As a result, the Japanese conglomerate is likely to seek higher ratings and release the Arm in public at a pretty reasonable price. It is worth noting that SoftBank bought Arm in 2016 for $32 billion.
