Before that, the conflict of interest caused by a $100 million investment fund under Wu xiongangs name was regarded as the root cause of the conflict between arm and Wu xiongang.
Screenshot of Financial Times report
Recall resolution invalid
It was discussed and disclosed to the board from the beginning, and we have support. Mr Wu said of his personal investment fund, alphatecture.
However, according to the financial times, citing people familiar with the situation, in November 2019, Wu xiongang asked the board of directors of arm China to approve the establishment of alphatecture, but it was not approved.
Subsequently, Wu xiongang privately launched the fund.
However, the observer network found that alphatecture was established in July 2019 with Allen Wu as the actual controller. The fund aims to invest in innovative technology start-ups in China, especially those related to arm technology.
In June this year, the board of directors of arm China suddenly announced that Wu xiongang, the chairman and CEO of arm China, was removed by a 7-1 vote.
Source: Financial Times
Wu xiongang was dismissed for breach of contract, decision and establishment of alphatecture fund, the two said in a document sent to director of Houpu investment, Feng Lei.
Wu xiongang revealed in this interview that he had reached an agreement with Houpu investment that the two sides must keep step by step on all major matters involving arm China, so the resolution to dismiss him was invalid.
This is one of the problems we are trying to solve. Wu xiongang believes that arm Chinas procedures for holding board meetings are incorrect.
Arm said that the board of directors of arm China identified the need for a change of leadership and we believe that a solution will be reached soon..
Houan innovation fund is jointly established by CIC, silk road fund, Singapore Temasek, Shenzhen Shenye group, Houpu investment and arm company, and managed by Houpu investment.
Since then, arm China has become a Chinese holding company, and arm company is the largest shareholder. At present, the shareholding ratio is diluted to 47.3%.
Wu xiongang is the first executive chairman and CEO of arm China. He joined arm in 2004 and became Vice President of sales in China in 2007. He was promoted to President of Greater China in January 2013.
As a team leader, everything Allen does with you is for the better development of arm ecology and arm China. In previous joint letters, arm China team supported Wu xiongang.
Becoming a stumbling block to NVIDIAs acquisition of arm
Observers noted that although Wu xiongang was involved in the recall storm, he still attended the 2020 aspencore Global CEO Summit and delivered a speech as the executive chairman and CEO of arm China on November 5.
According to the financial times, arm has failed to complete the recall on a practical level, and Wu xiongang continues to have legal control over arm China, which will also become a stumbling block for NVIDIAs $40 billion acquisition of arm.
Wu xiongang owns a 16% stake in arm China, which is the crux of the problem.
He believes that since its inception in 2018, the value of arm China has increased fivefold to 50 billion yuan (US $7.5 billion) today. But he did not say whether to hold or sell the shares.
Image source: arm China official wechat
At the time of the power seizing disturbance, arm and NVIDIA are preparing to apply to the Chinese market regulatory authorities for approval of the acquisition transaction. The application requires the cooperation of arm China and relevant data.
In 2019, arms revenue in China will grow by nearly 50% annually, accounting for 27% of arms global IP business. In 2018, this proportion will be 20%.
Compared with other joint venture companies in China, it is not a pure independent branch of arm.
All of these challenges can be solved Its normal that people have different opinions. Wu xiongang said.
Meanwhile, three people familiar with the matter disclosed that Lanting investment, a wholly-owned subsidiary of Singapores state-owned investment group Temasek, has committed to invest $50 million in Wu xiongangs personal fund.
According to the report, in 2019, Wu xiongang also cooperated with two members of arm Chinas board of directors for investment, and one of the board members also sought to obtain investment from arm China this year.
No one on the board knows whats going on behind the scenes, says an arm China board member. There are too many interests here.
Mr. Wus core leadership position in arm China ensures that our fund has good access to arm Chinas value chain resources. The document says.
Wu xiongang said that investment partners are the practice of our industry.
To prove that arm understood his plan, Wu also invited Jason Cheng, an outside lawyer, to give a brief presentation of some of the minutes apparently from board meetings.
These records show that Simon segars, the CEO of arm, has made positive comments on the fund, and the board of directors of arm China has approved an investment of $30 million in Wu xiongangs Fund.
However, a person close to arms China board then provided what appeared to be the same document, in which the word approval was penciled out and replaced with ideas to be explored further.
The board of directors of arm China advised Wu xiongang to explore the possibility of establishing a fund, but alphatecture has never been approved by the board, arm said
Source: observer.com editor in charge: Zhong Qiming_ NF5619