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SoftBank to offload stake in domestic telecoms unit
Posted on Thursday, 21 May 2020 12:21
Japanese conglomerate SoftBank has said it intends to jettison a 5.0 per cent shareholding in its domestic telecommunications business, known as SoftBank Corp.
The firm is carrying out the transaction as part of a planned fundraising of USD 41.00 billion through asset sales.
Under the terms of the transaction, SoftBank will sell 240.00 million shares in the Tokyo-listed business.
Proceeds have been earmarked for the repurchase of stock and reduction of debt, while increasing cash reserves.
No financial details have been disclosed at this time, but based on the target’s close of JPY 1,386 on 20th May, the last trading day prior to the announcement, the deal can be valued at JPY 332.64 billion.
Closing of the sale is slated to occur on 26th May, following which the vendor will continue to own 62.1 per cent of the domestic telecoms division.
This is not the first time SoftBank has been linked with an asset sale this week; on 18th May, the Wall Street Journal reported that the firm was in talks to offload a significant portion of its holding in T-Mobile US to Deutsche Telekom.
Earlier this week, the group released its financials for the year to 31st March 2020; it posted a net loss of JPY 800.76 billion, compared to net income of JPY 1,454.62 billion in the preceding 12 months.
Since the start of 2020, there have been 125 deals worth a combined USD 56.61 billion targeting wireless telecommunications carriers announced worldwide at the time of writing, according to Zephyr, the M&A database published by Bureau van Dijk.
As of the same date in 2019, companies in the sector had been targeted in 247 transactions with a combined value of USD 43.78 billion, while the figures stood at 122 and USD 21.11 billion in the preceding year.
© Zephus Ltd