ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronEye IconIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon PrintTitle ChevronIcon Twitter
SoftBank

SoftBank unveils $12bn sale of mobile unit stake

Asset unloading exceeds $41bn target as group braces for long-term virus impact

SoftBank's latest bid to shore up its financial strength could trim its stake in its core mobile unit to 40.4%.   © Reuters

TOKYO -- SoftBank Group on Friday said it will sell a significant portion of its stake in its Japanese telecommunications unit SoftBank Corp. to domestic and international investors to build up its cash reserves amid the uncertainty caused by the coronavirus outbreak.

SoftBank Group Japan, a wholly owned SoftBank subsidiary, will offer 927 million shares in the mobile unit through brokerage firms. The price of the shares will be determined in September. Their value, based on SoftBank Corp.'s closing price on Friday, reached 1.32 trillion yen ($12.4 billion).

SoftBank said another 100 million shares could be sold if there is strong demand.

If the overallotment option is exercised, SoftBank's stake in the domestic mobile unit would drop from 62.1% to 40.4%. SoftBank said it will continue to count the mobile unit as a consolidated subsidiary.

The sale will take SoftBank's asset monetization program, announced in March, far beyond its target of 4.5 trillion yen ($41 billion).

"In light of the ongoing uncertainty in the market environment due to concerns about a potential second or even third wave of COVID-19, [SoftBank] believes it is necessary to expand cash reserves beyond the 4.5 trillion [yen] Program to ensure flexible options to respond to changes in the market environment," the company said in a news release.

To cushion some of the selling pressure in light of the announcement, SoftBank Corp. announced on Friday that it will buy back up to 100 billion yen worth of its own stock. It has also said SoftBank Group Japan does not intend to further sell down its remaining stake.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this monthThis is your last free article this month

Stay ahead with our exclusives on Asia;
the most dynamic market in the world.

Stay ahead with our exclusives on Asia

Get trusted insights from experts within Asia itself.

Get trusted insights from experts
within Asia itself.

Try 1 month for $0.99

You have {{numberArticlesLeft}} free article{{numberArticlesLeft-plural}} left this month

This is your last free article this month

Stay ahead with our exclusives on Asia; the most
dynamic market in the world
.

Get trusted insights from experts
within Asia itself.

Try 3 months for $9

Offer ends January 31st

Your trial period has expired

You need a subscription to...

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers and subscribe

Your full access to Nikkei Asia has expired

You need a subscription to:

  • Read all stories with unlimited access
  • Use our mobile and tablet apps
See all offers
NAR on print phone, device, and tablet media

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more