Softbank to offload most of its Yahoo stake to repay loan

26 Aug 2011

Dow Jones Newswires reports that Japanese telecoms operator Softbank Corp has decided to sell off most of its 4% stake in Yahoo Inc to Citibank, as a means of repaying around USD1.135 billion worth of loans it has with the US banking group. Softbank took out the loans with Citibank in February 2004 at which time it said it would repay them with its Yahoo shares. With repayment due by 30 September 2011, Softbank’s equity stake in Yahoo will drop to 0.002%. The Japanese telco expects to post a one-time profit of approximately JPY76.4 billion (USD990 million) from the transaction in its fiscal year ending 31 March 2012. The extraordinary profit will likely boost Softbank’s full-year net income by JPY44.7 billion, it added.

Japan, SoftBank Group Corp