SoftBank Group to sell 1.33t yen of wireless unit stock

[TOKYO] Masayoshi Son's SoftBank Group (SBG) said it will sell about 1.33 trillion yen (S$17.07 billion) of the stock it holds in its Japanese wireless operation, adding to massive asset sales that have helped his conglomerate get back on track after missteps with startup investments.

The Tokyo-based parent said it will sell 927 million shares in SoftBank Corp through a global secondary offering, or about a third of its stake. The carrier's stock closed at 1,431.5 yen on Friday. Separately, the wireless unit announced it will be buying back up to 1.68 per cent of its shares for about 100 billion yen.

Mr Son, founder and chief executive officer, has turned around his company's fortunes since March by selling off assets and buying back his own stock. SBG had previously announced plans to sell about 4.5 trillion yen in assets and had said it was almost done with that programme.

Mr Son has used the proceeds to pay down debt and announce 2.5 trillion yen in share buybacks.

"In light of the ongoing uncertainty in the market environment due to concerns about a potential second or even third wave of Covid-19, SBG believes it is necessary to expand cash reserves beyond the 4.5 trillion yen programme to ensure flexible options to respond to changes in the market environment," the company said in its statement.

SoftBank said it is targeting overseas investors in Europe and Asia, excluding the US and Canada. The company aims to hand over the shares between Sept 23 and Sept 25, or five business days after the pricing and other details are settled.

SoftBank Group shares have more than doubled from their lows in March to 6,397 yen a share.

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