SoftBank Group Corp has announced plans to sell a 5% stake in its Japanese telecoms division SoftBank Corp which, based on yesterday’s closing share price of JPY1,375 (USD12.8), could generate between USD2.9 billion and USD3.1 billion for the under-pressure group. The planned sale of 240 million shares in SoftBank Corp is due to close on 26 May 2020, leaving the parent with a remaining 62.1% stake in the country’s third largest wireless carrier. The sale forms part of SoftBank’s strategy to divest up to JPY4.5 trillion of its assets to repurchase up to JPY2 trillion of its common stock. The remainder is earmarked for paying down debt, buying back bonds and increasing its cash revenues as its tech investments founder.
The news follows reports earlier this week that SoftBank Group Corp is in talks to sell ‘a significant portion’ of its T-Mobile US stake to controlling shareholder Deutsche Telekom.