SoftBank said to be planning to sell US$14 billion in Alibaba shares as business battered by pandemic
- The Alibaba stake sale could range from as little as US$12 billion to as much as US$15 billion, according to people with knowledge of the matter
- The sale is part of SoftBank’s effort to raise US$41 billion to shore up its businesses battered by the pandemic
The Japanese conglomerate is considering raising the remainder of the money by selling a stake in SoftBank, its domestic telecommunications arm, as well as part of its slice of Sprint following its merger with T-Mobile US, said one of the people, who requested anonymity discussing private transactions. The Alibaba stake sale could range from as little as US$12 billion to as much as US$15 billion, the people said.
SoftBank’s shares surged as much as 21 per cent in Tokyo Tuesday, their biggest intraday gain since listing. Alibaba’s American depositary receipts fell as much as 2 per cent in after-hours trading after Bloomberg’s story was published.
(Alibaba is the parent company of the South China Morning Post.)
Masayoshi Son, the founder of SoftBank, announced the sale plans Monday in Tokyo, though he did not specify which assets would be sold. He is eager to generate funds to buy back shares and slash debt to alleviate investor concerns that had shaved more than 40 per cent off SoftBank’s market value since its February peak.