TOKYO, Sept. 14 (Xinhua) -- SoftBank Group Corp. announced on Monday that it would sell its entire stake in British chip designer Arm Ltd. to U.S. semiconductor maker Nvidia Corp. in a move that could net the conglomerate up to 40 billion U.S. dollars to help offset investment losses.

SoftBank said that along with its Saudi Arabia-backed investment fund it would gain a stake in Nvidia through both cash and stocks of up to 8.1 percent.

The sale should be completed after approval by regulators by March 2022, SoftBank said.

According to a joint statement, SoftBank would be paid 12 billion U.S. dollars in cash and 21.5 billion U.S. dollars in common stock by Nvidia.

Softbank could receive an additional 5 billion U.S. dollars in cash or stock options when the British chip designer hits certain financial targets agreed to by the parties, with the statement adding that Nvidia would extend 1.5 billion U.S. dollars in equity to Arm employees.

"Joining forces with a world leader in technology innovation creates new and exciting opportunities for Arm," said SoftBank Chairman and CEO Masayoshi Son in the statement.

He refereed to Nvidia as being the "the perfect partner" for Arm Ltd.

SoftBank has been trying to raise funds to improve its battered financial situation after reporting a record net loss of 961.58 billion yen (9.06 billion U.S. dollars) in fiscal 2019 through March, owing to its Vision Fund's investments in poorly performing tech startups such as WeWork, a U.S. provider of shared work spaces.

In other moves to raise funds, the multinational conglomerate has said it would offload 4.5 trillion yen (42.44 billion U.S. dollars) worth of assets.

Some of these include its stake in T-Mobile U.S. Inc., SoftBank previously said.