SoftBank to book US$2.7 billion gain for Alibaba share transfer
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SOFTBANK Group said on Thursday (Mar 30) it will recognise a US$2.7 billion investment gain from the transfer of a stake in Alibaba Group Holdings to a wholly-owned subsidiary called Shiodome Project 17 GK.
Chinese E-commerce giant Alibaba’s shares jumped on Wednesday after it said it would split into six units and explore fundraisings or listings for most of them, marking the biggest restructuring in its 24-year history.
SoftBank said the transfer of 178.7 million Alibaba shares from the group holding company was to “improve management efficiency through the centralised management of these shares, in light of the potential to use them for financing in the future.”
It said in a statement that the gain on the sale of investment securities includes a gain of 117.1 billion yen (S$1.17 billion) which was related to a prepaid forward contract that was settled in October 2022 and had been previously deferred. REUTERS
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