SoftBank Group has almost cleared Alibaba's holdings, leaving only 3.8% of the shares in hand.

(Reuters file photo)

[Financial Channel/Comprehensive Report] As the market downturn hits the value of technology investments, SoftBank (SoftBank) has begun to liquidate almost all of the company's remaining shares in Alibaba (Alibaba), narrowing SoftBank's exposure to China and raising cash.

"Financial Times" reported that according to regulatory documents submitted to the US Securities and Exchange Commission (SEC), SoftBank Group sold about US$7.2 billion (about NT$219 billion) worth of Alibaba shares this year through prepaid forward contracts. Only 3.8% remain.

Softbank has held as much as 34% of Alibaba's shares in the past. Last year, Softbank sold Alibaba shares several times, reaching a record-breaking US$29 billion (approximately NT$882.3 billion).

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The Japanese group is facing a pivotal moment as SoftBank plans to list its British chip designer Arm, as it recovers from a series of failed investments and unprecedented losses.

For Alibaba, it represented the exit of a longtime backer.

SoftBank began the wave of selling as Alibaba shares fell to a six-year low.

Alibaba has been hit hard by China's regulatory actions against the technology industry in recent years. Ant Group's large-scale IPO (initial public offering) was called off. The regulatory crackdown caused Alibaba's stock price to fall by 70%.

Over the past 14 months, SoftBank earned an average of $92 a share from the forward sale of 389 million Alibaba shares, well below the $317 a share the company has achieved in the past, according to documents from data provider The Washington Service. All-time high.

The document also shows that after selling 30 million shares at a price of US$2.7 billion (about NT$82.1 billion) at the end of December, SoftBank raised about US$4.5 billion (about NT$136.9 billion) through forward sales of 46 million shares in February. ).

SoftBank declined to comment on the regulatory filings, but the group mentioned that the deal to sell Alibaba shares reflects the company's shift to a "defensive mode" to deal with a more uncertain business environment by raising cash to increase liquidity on hand and strengthen financial stability.

SoftBank also added that the additional funds raised from Alibaba stock will be disclosed in its fourth-quarter earnings report in May.

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