BRITISH chipmaker Arm is preparing to transfer shares in its China division to a special purpose vehicle set up by its owner Softbank, as it looks to accelerate its move onto the public markets.

Arm is being lined up to float in New York by Softbank after a blockbuster takeover bid by US rival Nvidia fell through earlier this year.

The firm has been battling to regain control of its China business due to its inability to audit the financials of the firm, the Financial Times reported.

Transferring shares from the firm will leave the division tied to Arm via a licensing agreement rather than the 47.3 per cent equity stake it currently holds, two sources told the Financial Times.

Softbank-owner Masayoshi Son has been locked in a dispute with Allen Wu, the head of Arm China, and negotiations over his exit broke down last year as the company looked to dislodge him from his post.

Sources said the Chinese government viewed the dispute as an opportunity to extract concessions from Arm.

Transferring the shares is expected to free up Softbank to push ahead with floating the firm, which is most likely to go ahead in New York.

Arm has been viewed as a strategically important asset in the UK however, with politicians piling pressure on the firm for a London listing.

(c) 2022 City A.M., source Newspaper