After the parent company SoftBank Group announced plans to sell about one-third of its Japanese subsidiary SoftBank Corp.'s shares, the latter’s share price fell 3.4% on Monday to 1,383 yen (approximately). RMB 90).

The SoftBank Group intends to sell approximately 1 billion shares of its mobile operator subsidiary at a discount of 3% to 5%, valued at approximately US$12.5 billion. The purpose is to monetize the assets of this large-scale investment-focused company. To help it survive the economic chaos during the COVID-19 pandemic, and to raise funds for investment in new technology companies. On Monday, SoftBank Group shares rose 4% on the Tokyo Stock Exchange.

SoftBank's initial public offering (IPO) in December 2018 was a perfect storm. Just a few days before the start of the transaction, the company suffered a rare network outage, which caused users across Japan to lose signal for more than four hours. E-commerce giant Rakuten's plans to enter the Japanese wireless market and the sell-off in global stock markets have also scared investors. SoftBank’s share price is about 7% lower than its first-day issue price of 1,500 yen.

A senior analyst at the U.S. investment bank wrote in a report: "SoftBank Group has shown a very disciplined approach in managing its balance sheet. This is a welcome change, but for SoftBank’s shareholders, it’s Not a good sign."

SoftBank Group said on Friday that it plans to sell 223.5 million shares of SoftBank Corporation to overseas investors in Europe and Asia (excluding the United States and Canada) and to place an additional 33.5 million shares. Domestic investors will buy 670.5 million shares. The company's goal is to transfer shares between September 23 and 25, or to complete the transfer of shares within 5 working days after pricing and other details are finalized. (Little)

Source: NetEase Technology Report, translated by Google Translate