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SoftBank to sell $7.9 billion of Alibaba stock to cut debt

Staff writer ▼ | June 1, 2016
SoftBank Group will sell at least $7.9 billion of shares in Alibaba Group, a move that will cut the Japanese firm's debt.
Technology   SoftBank goes down with Alibaba to 28 percent
The transaction marks the first sale of shares in the Chinese e-commerce giant by its largest shareholder since SoftBank began investing in the company in 2000, and will reduce its stake to around 28 percent from 32.2 percent. The two companies said they would maintain a strategic partnership.

The planned share sale will include $5 billion to $6 billion of stock that will be sold by private placement to institutional investors by a SoftBank-controlled trust. Morgan Stanley and Deutsche Bank will manage that portion of the sale.

Another $2 billion worth of stock will be bought by Alibaba using cash on hand and $400 million will be bought by the Alibaba Partnership, a 34-person group made up of Ma and other Alibaba founders and executives. An additional $500 million worth of stock is set to be sold to an unidentified sovereign wealth fund.