Softbank Corp. cashed out 34 billion US dollars, and the proportion of Alibaba shares dropped to 14.6%.
CTOnews.com August 10 news, after experiencing huge losses in the 2021 fiscal year and the first quarter of 2022, Softbank Corp. and his vision fund performance is very dismal. Coupled with various reasons, Softbank Corp. has had a difficult year. As a result, some media exposed that Softbank Corp. sold half of Alibaba's positions through a "forward contract" to raise $22 billion.
By mid-July, Softbank Corp. 's position in Ali had dropped to 23.9%.
Softbank Corp. Group announced today that the board of directors approved the advance settlement of several prepaid forward contracts that Softbank Corp. previously entered into with counterparties of several financial institutions to raise funds using some of the company's shares held by Softbank Corp.. The settlement of up to 242 million Alibaba ADR forward contracts is expected to achieve a total transaction income of 4.6 trillion yen, reducing the shareholding to 14.6%.
The deal is expected to bring Softbank Corp. 4.6 trillion yen ($34 billion) in cash, according to the announcement.
CTOnews.com learned that Alibaba's US shares closed today at $91.19, with a market capitalization of about $241.484 billion, down about 2.88 per cent since listing and about 1.85 per cent before trading today.
In response, Alibaba announced on the Hong Kong Stock Exchange on the same day that Softbank Corp., the company's shareholder, would pre-settle the prepaid forward contract involving a maximum of about 242 million American depositary shares of the company, accounting for about 9 per cent of the total number of shares issued by the company.
Softbank Corp. expects that the share settlement of these prepaid forward contracts will not lead to the sale of any additional company shares by the counterparties of the financial institutions to the market, the reason is that the company shares involved in these prepaid forward contracts have already been traded in the market by such counterparties at the time of the above realised transactions.
