Friday, December 20, 2024 | 11:24 AM ISTEN Hindi

Home / World News / SoftBank to book $34-bn gain on Alibaba shares; reduce stake to 14.6%

SoftBank to book $34-bn gain on Alibaba shares; reduce stake to 14.6%

The transaction 'will be able to eliminate concerns about future cash outflows, and furthermore, reduce costs associated with these prepaid forward contracts', SoftBank said

Premium

The transaction is not expected to result in additional sales of Alibaba shares on the market as the shares were hedged at the time of the original monetisation, SoftBank said.

Reuters Tokyo

1 min read Last Updated : Aug 10 2022 | 9:49 PM IST

SoftBank Group Corp on Wednesday said it will book an estimated gain of 4.6 trillion yen ($34.08 billion) on settling prepaid forward contracts using shares in Alibaba Group Holding, reducing its stake to 14.6% from 23.7%.

The estimated gain includes a 2.4 trillion yen gain from the revaluation of shares in the Chinese e-commerce giant and a derivative gain of 0.7 trillion yen, SoftBank said in a filing.

The transaction "will be able to eliminate concerns about future cash outflows, and furthermore, reduce costs associated with these prepaid forward contracts," SoftBank said.

"These will further strengthen our defence against the

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Topics : SoftBank Alibaba

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in