Battle for Arm China heats up as Softbank launches renewed attempt to take control while CEO vows to resist
- Arm China CEO said Softbank’s efforts to take back control pose risks for China’s supply chain security and technology self-sufficiency
- The boardroom battle between the foreign shareholder and Chinese management team has become a widely-watched case
The two-year battle for control of Arm China is heating up again as Softbank, owner of the UK-based joint venture partner Arm Ltd, mounts a renewed effort to oust the defiant head of the Chinese operation so it can proceed with a public listing.
In an interview with the South China Morning Post on Wednesday, Wu said Softbank’s efforts to take back control of Arm China pose risks for China’s supply chain security and technology self-sufficiency, and could jeopardise the interests of other shareholders. Wu controls a 16 per cent equity stake in the joint venture.
“Softbank has already given up its absolute control of Arm China for money,” Wu said, referring to the fact that Softbank sold a 51 per cent stake in Arm China to a Chinese consortium for US$775.2 million in 2018. “Is it right for Softbank to control Arm China? I don’t think it’s right.”
Wu, who has headed the China joint venture since its founding in 2018, filed lawsuits in Shenzhen challenging Arm China’s 7-1 boardroom vote to fire him two years ago.