Softbank merging four telecom units in April; selling USD3.82bn bond

26 Jan 2015

Softbank Corp of Japan has confirmed it plans to sell JPY450 billion (USD3.82 billion) worth of unsecured subordinated bonds to repay loans and bulk up its investment funds. The sale will be aimed primarily at retail investors, it says, and whilst it is tight-lipped on how the proceeds will be used, in an interview earlier this month company finance manager Yoshimitsu Goto told Reuters: ‘If an investment opportunity were to suddenly appear tomorrow, we want to be financially prepared and not lose the opportunity due to the lack of money.’

The sale underwriters are Nomura Securities, Daiwa Securities, Mizuho Securities, SMBC Nikko Securities, Mitsubishi UFJ Morgan Stanley Securities, SBI Securities, IwaiCosmo Securities, Okasan Securities and Tokai Tokyo Securities.

In another corporate development, Softbank says it has secured board clearance to merge four of its Japanese telecommunications subsidiaries in April, in order to improve operational efficiency and competitiveness. Starting 1 April, the parent will begin to integrate three domestic operations – broadband provider Softbank BB Corp (Yahoo BB), fixed line operator Softbank Telecom and Ymobile Corp – into the surviving cellular division, Softbank Mobile Corp.

Japan, SoftBank Corp, SoftBank Group Corp