SoftBank May Raise $14b From Stake Sale In Wireless Carrier

SoftBank Group Corp said on Friday it planned to slash its exposure to wireless carrier SoftBank Corp in a share sale worth 1.47 trillion yen ($13.8 billion) at Friday’s close, marking an expansion of the conglomerate’s asset sales.

The sale will see SoftBank’s stake fall to 40.4% from 62.1%. The offer price for the 1.03 billion shares, including an over-allotment, will be set Sept. 14-16.

SoftBank Group Chief Executive Masayoshi Son has been selling down the group’s core assets to stabilise its balance sheet and fund a record share buyback amid the coronavirus outbreak.

The announcement marks the expansion of stake sales beyond the 4.5 trillion yen asset sale plan announced in March. One-off gains from the sales boosted the group’s earnings in the April-June quarter.

“In light of the ongoing uncertainty in the market environment due to concerns about a potential second or even third wave of COVID-19, (SoftBank Group) believes it is necessary to expand cash reserves,” the group said in a statement.

Japan’s third-biggest wireless carrier will remain a group subsidiary, SoftBank said, fitting a pattern of the conglomerate exerting influence over listed investments without holding majority stakes.