Softbank to sell off $14bn stake in its mobile network
Softbank remains one of Japan’s largest mobile network operators, with over 40 million subscribers across the country
Japanese investment fund Softbank has revealed plans to sell off over 30 per cent of its shares in its mobile network subsidiary, raising $14 billion (trillion yen) in the process.
The sale would reduce Softbank’s ownership of its mobile network subsidiary business from 62.1 per cent to 40.4 per cent.
Earlier this year, Softbank announced plans to sell off around $40 billion worth of assets, as it looks to rebalance its investments in the wake of the global coronavirus pandemic.
“This programme will be the largest share buyback and will increase in the largest increase in cash balance in the history of SBG, reflecting the firm and unwavering confidence we have in our business,” said Masayoshi Son, chairman and chief executive officer of SBG, said in March.
“This will allow us to strengthen our balance sheet while significantly reducing debt. Moreover, the monetisation of assets represents less than 20 per cent of the company’s current asset value,” he added.
Softbank has been undergoing a process of monetising its assets in recent months, with the merger of its US telecoms brand Sprint with its competitor T-Mobile adding significant cash injections to Softbank Group’s revenues.