TUESDAY: Yesterday, during late hours of trade, SoftBank Group Corp. announced to have been strategizing for a reduction of its stake in Alibaba Group Holding Ltd.
The news comes after speculating that U.S. web company, Yahoo Inc. might opt a disposal of its 15% stake in Alibaba alongside a possible sale of its core business.
UPDATE: As per new policy, SoftBank would sell at least $7.9 billion in Alibaba shares to reduce its level within China-based company.
THURSDAY: SoftBank Chief Executive Masayoshi Son will remain a director at Alibaba, while Alibaba Executive Chairman Jack Ma will remain on the board of SoftBank.
On a related note, despite of such a strategy SoftBank is certain to remain as Alibaba’s largest shareholder comprising 28% stake – as per company’s claims.
“Although Softbank is stepping up investment in Internet firms, it is also making serious efforts to improve its financial standing.” – Mitsubishi UFJ Morgan Stanley’s analyst, Hideaki Tanaka
Exclusive data obtained from Market Watchers cites (for readers’ concern):
|U.S. shares of Alibaba plunged by 2.3% to $80.10 after hours|
|Shares of SoftBank finished trading flat and are bearish worth 15% from same time duration last year – due to concerns about its heavy debt burden|
EXCLUSIVE: The planned share sale will include $5 billion to $6 billion of stock to be sold by private placement to institutional investors by a SoftBank-controlled trust. Morgan Stanley and Deutsche Bank will manage that portion of the sale.
