Softbank To Sell Alibaba Shares


Posted June 10, 2016 by shinseicorporate

Telecoms and internet ventures company to sell part of Alibaba stake.

 
Japan's SoftBank has announced its intention to sell at least $7.9 billion worth of shares of Chinese e-commerce giant Alibaba to raise capital.

The transactions will reduce SoftBank’s interest in the Chinese e-commerce giant to around 28%. The Japanese telecoms and internet company is Alibaba's largest shareholder and once owned about 32% of its shares. The company said the sale would help to boost cashflow and enhance its leverage ratio.

The largest portion will come courtesy of the issuance of $5 billion in mandatory exchangeable trust securities that can be converted into Alibaba shares after a period of three years. SoftBank also intends to sell $2 billion in shares back to Alibaba and $500 million to a sovereign wealth fund that the company did not name.

Alibaba Executive Chairman Jack Ma said, "As SoftBank looks to strengthen its own balance sheet, Alibaba determined that it was the best use of our capital to reinvest in our own business through an efficient buyback of a large number of shares in our own company that is accretive to our stockholders," said in a statement.

“SoftBank have made a slew of very shrewd investments over the years not least of which is the construction of its own infrastructure and broadband technologies in Japan. It owns Yahoo! Japan and a significant holding in the Sprint telecommunications company in the US,” said Hardeep Sandhu, chief economist at Tokyo-based investment house, Shinsei Corporate Management.

Shinsei Corporate Management maintains a hold rating on Alibaba, which it says is under review.

About Shinsei Corporate Management:
We at Shinsei Corporate Management express our dedicated commitment to the local communities around us and to our loyal clients’ in a variety of different ways.

Helping to realize public orientated projects such as the building of new schools and healthcare centres are a key focus of our core beliefs of what a financial institution should be doing to better our local communities. Assisting with the sale, merger or acquisition of a company that requires a strong partner to lead them safely through treacherous waters. We ensuring the preservation of personal wealth, pension funds and beneficial foundations all get the right level of care and attention the need in order to maintain stability and thrive.
-- END ---
Share Facebook Twitter
Print Friendly and PDF DisclaimerReport Abuse
Contact Email [email protected]
Issued By Claude Rolan
Website http://www.shinseisecurities.com
Phone +81345798450
Business Address CARROT TOWER 21F, 1-1 TAISHIDO 4-CHOME,
SETAGAYA-KU TOKYO 154-0004
Country Japan
Categories Business , Finance , Government
Tags alibaba , ecommerce , shinsei corporate management , yahoo
Last Updated June 10, 2016