To Help Reduce Debt Load, SoftBank Selling $7.9 Billion worth Alibaba Stock
On Tuesday, Japan's SoftBank Group Corp said, to increase its financial flexibility it would sell at least $7.9 billion worth of its shares in Alibaba Group Holding Ltd, the Chinese e-commerce giant. The proceedings from the sale will help the company to trim down its debt and to revive the U.S. wireless company, Sprint Corp which it bought three years back.
The Japanese multinational telecommunications and Internet corporation based in Tokyo owns 32.3 percent of Alibaba shares and said it would retain approximately 28 percent stake in Alibaba.
Masayoshi Son, SoftBank's founder and Chief Executive invested in Alibaba in 2000. At that time it was just a small-commerce company, which later grew to make a position in the U.S IPO history. Then he had invested $20 million in Alibaba, which has now turned into the largest online shopping mall in China with greater than $200 billion market value. Mr. Son's investments have borne fruits for sure.
That's not all; Mr. Son and Alibaba's founder and executive Chairman Jack Ma have been close associates and have had strong ties through some joint ventures. In May itself, the companies said in a joint venture in Japan, they will launch cloud-computing in the country.
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