SoftBank settlement of 242 million ADS ADS holding ratio dropped to 14.6% in advance

Cover Journalist Ouyang Hongyu

On the afternoon of August 10, SoftBank Group announced that the board of directors approved the early shares to settle in the previously established with several financial institutions to trade with several financial institutions, and use some of the shares held by some companies held by SoftBank to raise funds for a long -term contract. According to reports, the long -term contract of up to 242 million Alibaba ADR will be settled this time. It is expected that the total transaction income will reach 4.6 trillion yen, and its shareholding ratio will be reduced to 14.6%.

Alibaba also announced on the Hong Kong Stock Exchange on the same day that the company's shareholders Softbank will settle in advance for advanced payment in advance involving the company's deposit shares with a maximum of about 242 million shares, accounting for about 9%of the company's total shares.

According to the public disclosure of SoftBank Group, the contract for this settlement was made by SoftBank's use of some Alibaba shares to raise funds. The contract can be replaced back to the shares delivered by the contract through cash settlement. The cash obtained when the contract is concluded is expected to be settled at the end of September 2022.

In fact, this is not the first time SoftBank has exited from technology companies in recent times. Earlier, SoftBank's Vision Fund had emptied all the equity of Uber, the online car giant, and reduced the holding company of the real estate trading platform OpenDoor, and the KE holding company that operated the housing service of housing.

One of the important reasons why Softbank Group accelerates the exit of cash retirements is to offset investment deficits. On August 8th, SoftBank Group released the financial report of the first quarter of fiscal year 2022. The SoftBank Group recorded a net loss of about 3.16 trillion yen (about 24.5 billion US dollars) in this quarter. The maximum single -quarter loss record in the last quarter.

From the perspective of SoftBank, the shares settlement in advance will eliminate concerns about future cash outflows, reduce costs related to prepaid long -term contracts, and further strengthen their defense capabilities for the severe market environment. Taking the holding of Alibaba as an example, SoftBank Group predicts that these prepaid forward contract settlement will not lead to transaction opponents of various financial institutions to sell Alibaba's shares to the market. When the above -mentioned monetization transaction occurred, he had been hedged by the trading opponent market.

Analysts believe that the shares corresponding to SoftBank's holdings have already entered the market before, so the announcement announced this time will not lead to an increase in Alibaba's shares in the open market, nor will it change the decision -making power of Alibaba Group.

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