SoftBank to gain $34.07 bln from forward sale of Alibaba shares

Asian Tech Press (Aug 10) -- Japan's SoftBank Group Corp. expected to gain 4.6 trillion yen ($34.07 billion) through forward sales of 242 million Alibaba shares.

SoftBank announced Wednesday that its board of directors has agreed to settle up to 242 million forward contracts for Alibaba's American depositary shares (ADSs), with total gains from the transactions expected to reach 4.6 trillion yen ($34.07 billion).

The Japanese conglomerate has already sold about a third of its Alibaba shares using prepaid forward contracts, raising a total of $22 billion, and the deals will significantly reduce its stake in the Chinese e-commerce giant in the coming years.

And, since last October, SoftBank has traded 40 million Alibaba shares to close out deals struck in previous periods, reducing its stake in Alibaba from 24.8% to 23.9% in mid-July.

Upon closing the settlement, SoftBank's stake in Alibaba will drop to about 14.6%.

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