SoftBank shares were not traded on Monday, a market holiday in Tokyo.
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SoftBank meanwhile said it would offer £17 for each ARM share, a premium of around 43 percent compared with Friday’s closing price of £11.89.
“Anytime a major economy has a downward shift in the exchange rate, that’s gonna make Japanese companies who are hell-bent on expanding overseas take a look, but I think in the case of the United Kingdom, it depends very much on what kind of industry we’re talking about”, she said.
That sent ARM’s share price rocketing by about 41 percent on Monday in London. Given the significant move in the stock, we believe that ARMH is fully valued at current levels.
SoftBank’s £24 billion tie-up with Cambridge-based ARM Holdings shows “Britain is open for business”, Theresa May said.
The Cambridge-based ARM stands to be central to the tech industry’s shift to the Internet of Things – a network of devices, vehicles and building sensors that collect and exchange data – a stated focus for Mr Masayoshi Son, SoftBank’s founder.
She said May gave her support to the deal after a conversation with SoftBank’s chief executive Masayoshi Son on Sunday, where she learned of the firm’s employment intentions and its commitment to maintain ARM’s headquarters in Cambridge.
Arm designs the processor chips used in the Apple Inc.
SoftBank is seeking to expand into the so-called Internet of Things, or home devices from smart-thermostats to security cameras and domestic appliances that connect online, the Associated Press reports.
Analysts, though, say the business lies far outside the realm of SoftBank’s existing operations, and the price was hard to justify without further explanation from Mr. Son about what he hopes to gain from buying ARM. SoftBank is particularly interested in the IoT opportunities associated with the acquisition. On the conference call, Son said Sprint is becoming self-sufficient, and Sprint shares fell on the news.
The companies announced this morning that they had reached agreement on the terms of an all-cash deal, which will see each Arm shareholder entitled to receive 1,700p in cash.
City Index analyst Ken Odeluga warned that the “main risk” to the SoftBank deal was a “potential counterbid” from a big chip-sector player like Intel or Samsung.
SoftBank had interest-bearing debt of 11.9 trillion yen at end-March, including four trillion yen at Sprint, and its net debt now stands at 3.8 times core earnings.
Though ARM has warned on the staffing impact of Brexit, its revenues are largely in dollars, and the weaker pound prompted its shares to climb nearly 17 percent since the vote.
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SoftBank will keep Arm’s headquarters in Cambridge, and said it intends to “at least double” the employee headcount in the United Kingdom over the next five years.
