SoftBank says Alibaba’s registration of 1 billion ADSs is not tied to any specific future transaction
- Alibaba’s F6 filing is not tied to any specific future transaction by Softbank Group, the Japanese company said
- Alibaba last week filed to register an additional 1 billion ADSs
Alibaba Group Holding’s recent registration of additional American Depositary Shares (ADS) is not tied to any specific future transaction by SoftBank Group Corp, a spokesman for the Japanese conglomerate said on Wednesday.
“The registration of the ADR conversion facility (F6 filing, which was filed by Alibaba), including its size, is not tied to any specific future transaction by SBG,” SoftBank said in a statement to Reuters.
E-commerce giant Alibaba last week filed to register an additional 1 billion American Depositary Shares. The move “might also suggest potential selling intention by SoftBank", Citigroup analysts said this week.
“Since Softbank has been a pre-IPO investor, we believe a large proportion of those shares have not been previously registered as ADS,” Citi analysts including Alicia Yap wrote.
SoftBank’s stake of around 25 per cent in Alibaba is worth about US$82 billion and has its origins in a US$20 million investment in 2000. Shares of Alibaba, owner of the South China Morning Post, have fallen by 60 per cent since its October 2020 high amid a regulatory crackdown against tech firms in China.