U.K.-based semiconductor company Arm Holdings, a subsidiary of SoftBank Group, has agreed to sell a 51 percent stake in its Chinese division, Arm Technology China, to a consortium led by Hou An Innovation Fund for US$775 million. Hou An Innovation Fund is an investment vehicle co-managed by Arm Holdings and China-focused private equity fund manager Hopu Investment Management, with investors including China Investment Corporation, Silk Road Fund, Temasek Holdings, Shum Yip Group and Hopu. Arm Holdings and the acquiring consortium will form a joint venture that will license Arm semiconductor technology to Chinese companies and develop Arm technology locally. Arm Holdings will continue to receive a significant proportion of all license, royalty, software and services revenues arising from Arm China’s licensing of Arm semiconductor products. The transaction, which is expected to close in June 2018, is subject to the completion of customary filings and registrations and other customary conditions.