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SoftBank to tap $23.6bn dividend payment from Chinese unit

TOKYO -- SoftBank Group announced Monday that a Chinese subsidiary that sold shareholdings in Alibaba Group Holding would pay the parent some 2.37 trillion yen ($23.6 billion) in dividends.

SB China Holdings sold shares in the Chinese online retail giant, bringing in $10 billion. SoftBank will apply the funds toward acquiring British chip design firm ARM Holdings.

The Japanese information technology services provider had previously explained that it would pay for the 3.3 trillion yen purchase of ARM with a 1 trillion yen bridge loan from Mizuho Bank and group cash holdings. Now, with the dividend payments, SoftBank has raised enough money for the acquisition.

SoftBank Group will book the receipts as non-operating income for the fiscal year ending March 2017. Consolidated pretax profit will likely not be affected, since the transaction was carried out within the group. But there could be an impact on net profit, which comes after taxes.

(Nikkei)

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