SoftBank to cut its wireless carrier stake by 40%
On Friday, SoftBank Group Corp (9984.T) announced that it would cut its exposure to wireless carrier SoftBank Corp (9434.T) in a share sale worth 1.47 trillion Yen ($13.8 billion).
SoftBank Group’s Chief Executive Officer Masayoshi Son said that he had been selling the group’s core assets to stabilize its balance sheet while funding a record share buyback amid the coronavirus pandemic.
“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,” SoftBank said in a statement to the press.
However, SoftBank said that Japan’s third-biggest wireless carrier would remain a group subsidiary. Masayoshi Son also stated that SoftBank would hold the remaining shares “for the medium to long term.”
SoftBank Corp’s shares went down by 1.6% at 1,431 Yen.