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SoftBank Group to sell 5% of domestic telco to raise $41 billion via asset sales

It is in talks to raise about $20 billion by selling part of its stake in T-Mobile US Inc, the Wall Street Journal reported this week

SoftBank Group to sell 5% of domestic telco to raise $41 billion via asset sales

SoftBank Group Corp said it plans to sell 5% of its domestic telco SoftBank Corp as part of its plan to raise $41 billion through asset sales.

The sale of 240 million shares for a yet to be determined price is set to close on May 26 and will leave SoftBank Group with a 62.1% stake in Japan's third-largest wireless carrier.

SoftBank needs cash for a record stock buyback aimed at supporting the price of its shares, which have been used by Chief Executive Masayoshi Son as collateral for loans, as its tech investments falter.

It is in talks to raise about $20 billion by selling part of its stake in T-Mobile US Inc, the Wall Street Journal reported this week.

The conglomerate also said on Monday it plans to raise 1.25 trillion yen ($11.6 billion) by monetising part of its stake in China's Alibaba Group Holding Ltd through derivative contracts.

Also read: Softbank CEO pins all hopes on 'winged unicorns' to save collapsing tech empire

Also read: Coronavirus impact: WeWork India to lay off 20% of its workforce

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