SoftBank Group to sell $3.1b worth stake in Japanese telco unit

Signage for SoftBank Group Corp. is displayed outside a store in Tokyo, Japan, on Thursday, Nov. 29, 2018. Photographer: Bloomberg/Bloomberg

SoftBank Group Corp said it plans to sell 5% of its domestic telco SoftBank Corp, currently worth $3.1 billion, as part of a programme to raise $41 billion through asset sales.

The sale of 240 million shares for a yet to be determined price and set to close on May 26 will leave SoftBank Group with a 62.1% stake in Japan’s third-largest wireless carrier.

SoftBank Corp’s shares closed down 0.8% on Friday ahead of the announcement at 1,375 yen, giving a 5% stake a market valuation of 330 billion yen ($3.1 billion).

SoftBank needs cash for a record stock buyback aimed at supporting the price of its shares, which have been used by Chief Executive Masayoshi Son as collateral for loans, as its tech investments falter.

It is in talks to raise about $20 billion by selling part of its stake in T-Mobile US Inc, the Wall Street Journal reported this week.

The conglomerate also said on Monday it plans to raise 1.25 trillion yen by monetising part of its stake in China’s Alibaba Group Holding Ltd through derivative contracts.

SoftBank reported a record annual operating loss this week as investments via its $100 billion Vision Fund flounder, with Son forced to sell down core assets from his portfolio to shore up the balance sheet and restore investor confidence.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.