Japan’s Softbank Group wants to further expand its cash reserves as a way to respond to market uncertainty and reduce debt further, and will do this by selling part of its stake in Japanese telecom operator Softbank. This will reduce its stake to 40.4 percent from 62.1 percent. The group noted that the unit’s importance to the group remains unchanged and that Softbank will be a subsidiary after the secondary offering. The group said it intends to keep its holding for the medium to long term.
As of 3 August, Softbank Group said it has sold or monetised JPY 4.3 trillion (almost USD 41 billion) worth of assets, as part of a programme announced in March to buy back shares and reduce debt for a total of JPY 4.5 trillion. Softbank Group said it will sell a total of 927.5 million shares in the Japanese operator, which at the current share price would raise around JPY 1.3 trillion. There will also be a greenshoe of 100.5 million more shares. The offer price will be determined on the pricing day.
