JAPAN'S SoftBank is to sell almost all of its remaining shareholding in Alibaba, limiting its exposure to China and raising cash as the market downturn pummels the value of its technology investments, reports London's Financial Times.
Led by billionaire Masayoshi Son, Softbank has sold about US$7.2 billion worth of Alibaba shares this year through prepaid forward contracts, after a record $29 billion sell down last year.
The forward sales, revealed through a Financial Times analysis of regulatory filings sent by post to the US Securities and Exchange Commission, will eventually cut SoftBank's stake in the $262 billion Chinese ecommerce group to just 3.8 per cent.
The contracts allow SoftBank the option to buy back the shares, but the group has settled previous deals by handing over the stock. The Japanese investor once owned as much as 34 per cent of Alibaba.
SoftBank's sell down comes at a pivotal moment for the Japanese group, which is planning a blockbuster listing of UK chip designer arm as it seeks to recover from a spate of failed investments and unprecedented losses. For Alibaba, it will mean the retreat of a longtime backer just as the Chinese group attempts to reinvent itself by splitting into six entities.
SeaNews Turkey
Led by billionaire Masayoshi Son, Softbank has sold about US$7.2 billion worth of Alibaba shares this year through prepaid forward contracts, after a record $29 billion sell down last year.
The forward sales, revealed through a Financial Times analysis of regulatory filings sent by post to the US Securities and Exchange Commission, will eventually cut SoftBank's stake in the $262 billion Chinese ecommerce group to just 3.8 per cent.
The contracts allow SoftBank the option to buy back the shares, but the group has settled previous deals by handing over the stock. The Japanese investor once owned as much as 34 per cent of Alibaba.
SoftBank's sell down comes at a pivotal moment for the Japanese group, which is planning a blockbuster listing of UK chip designer arm as it seeks to recover from a spate of failed investments and unprecedented losses. For Alibaba, it will mean the retreat of a longtime backer just as the Chinese group attempts to reinvent itself by splitting into six entities.
SeaNews Turkey
