SOFTBANK Group announces that it will partly sell Alibaba shares Affiliated company will be removed

The SoftBank Group, which had a final deficit of more than 3 trillion yen in its financial results from April to June, announced that it would sell part of its shares in Alibaba Group, China's largest online retailer. The aim is to strengthen the financial base, and as a result, it will be removed from the SoftBank Group's affiliates.

SoftBank Group previously held a 23.7% stake in Alibaba Group.

The company is raising funds from financial institutions using this stock as collateral, but in order to strengthen its financial base, it plans to sell some of the stock by the end of September, and the investment ratio will be 14.6%.

As a result, Alibaba Group will no longer be an affiliated company to which the equity method is applied.

The company will announce the impact on the financial results of the entire group when it is confirmed, but according to the company's estimate, the profit before tax for the financial results from July to September this year will be approximately 4.6 trillion yen. is expected to be recorded.

The SoftBank Group has a final deficit of 3.1627 trillion yen in the financial results from April to June this year, and President Masayoshi Son said that he would strengthen the financial base and promote cost reduction measures without sanctuaries.

Source: https://www3.nhk.or.jp/news/html/20220810/k10013764791000.html