A mysterious company is trying to buy a majority stake in Arm China, which is shaken by the declaration of independence and the dismissal of the CEO

In 2021, former CEO Allen Wu unilaterally became independent from Arm itself, a joint venture ' Arm China ' with a license right in China of ARM Holdings , a global semiconductor company under the SoftBank Group. However, it is in the midst of confusion such as the announcement of a CEO change in April 2022. In May 2022, it was reported that a mysterious company called 'Lotcap Group' was trying to acquire 51% of the shares of Arm China.

Equity Collection Equity Fund Yoan Equity Science and Technology Nakakata Equity Equity Equity Technology 51% Crotch Equity Office Intention
https://ch.acnnewswire.com/press-release/simplifiedchinese/75266/

Controlling stake in Arm China may shift to little-known entity as chip joint venture's ownership saga drags on | South China Morning Post
https://www.scmp.com/tech/big-tech/article/3178400/controlling-stake-arm-china-may-shift-little-known-entity-chip-joint

Mysterious firm seeks to buy majority stake in Arm China • The Register
https://www.theregister.com/2022/05/20/mysterious_arm_china/

Former CEO of Arm China Wu offered Arm China customers a discount on license fees, in exchange for inviting them to invest in their company. When this fact was discovered, Arm China's board of directors passed Mr. Wu's dismissal in 2020, but the legal dismissal could not be carried out because Wu's CEO held the company seal. As a result, Mr. Wu refused to be dismissed and continued to take substantial control, expelling senior executives on the Arm side at the board of directors. Arm tried to stop the runaway of Arm China by stopping the licensing of new IP, but Arm China declared independence from Arm and stole some licenses and customers in the Chinese market.

Arm's Chinese joint venture declares independence from Arm, steals some licenses and customers in the Chinese market as it is-GIGAZINE

After that, in April 2022, the official Arm China account of the major SNS 'Weibo' became Mr. Eric Chen, managing partner of SoftBank Vision Fund , and Mr. Liu Renchen, who was the deputy director of the research institute of Tsinghua University. Announced that it will be appointed as Co-CEO of Arm China. On May 6th, an official statement was posted on Arm China's official website stating that 'Liu Renchen and Eric Chen took over the business operations', but Mr. Wu opposed this decision on SNS. I am continuing my activities at.

Former CEO of 'Arm China' who stole Arm's IP is requested to be dismissed, but is rebelling using SNS --GIGAZINE

Meanwhile, in a press release distributed to the media through a public relations agency on May 18, it was reported that a company called Lotcap Group had signed a basic agreement to acquire a 51% stake in Arm China. Lotcap Group is a company specializing in science and technology investment in Dawan District , including Hong Kong, Macau, Guangzhou and Shenzhen, and has established a subsidiary called Lotcap Fund for the acquisition of Arm China shares. Claims.

However, the press release did not provide contact information for the Lotcap Group except for the email address, and the South China Morning Post, a daily English newspaper in Hong Kong, did not find any information about the Lotcap Group when it was searched on Google or Baidu. That. In addition, Lotcap Group does not exist in the Chinese company register database, and it seems that it was included in the list of registered companies of the Macau government, the capital base is 50,000 Macau Pataca (about 790,000 yen), and the location is a commercial building in Macau. It seems that it was.

A person close to Mr. Wu has reached an agreement with South China Morning Post that Lotcap Group has reached an agreement with Hopu Investment, a private equity fund in China that owns 36% of Arm China's stake, and still owns 16% of the stake. He said he was trying to get in touch with Mr. Wu. Hopu Investment, Arm China, and Arm Ltd, a subsidiary of Arm Holdings, declined to comment on inquiries from the South China Morning Post.

In addition, when the Chinese newspaper ' 21st Century Business Herald ' inquired to the people concerned of Arm China, it was said that Arm China had not received information on the sale of shares or contact information of Lotcap Group.