SoftBank to cut back its stake in Alibaba

SoftBank to cut back its stake in Alibaba


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.

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I am an independent trader currency and commodity with about eight years of experience. I love the financial world because it is like one big puzzle and I hope we help each other out to solve the puzzle to help us realize our dreams. I received my BBA in Accounting (With Honors) - from The University of Texas - San Antonio. Achievements: Beta Alpha Psi National Accounting Honors Fraternity member, Leadership Challenge Participant, Dean's List. I have passed the Series 63, 22, Texas Real Estate exam, and the DRI Business Continuity exam.