SoftBank to gain $34 billion from cutting Alibaba stake

SoftBank Group said on Wednesday that it would earn $34.1 billion by reducing its stake in Alibaba Group, according to the report by Reuters on August 10th. The Japanese company will reduce its shareholding in Alibaba from 23.7% to 14.6% by settling prepaid forward contracts.

SoftBank said in a document that by settling Alibaba’s share contract, it would be able to eliminate concerns about future cash flow and strengthen the ability to withstand the harsh market environment.

Due to Beijing’s crackdown on the technology industry, including enormous fines on Alibaba and censorship of the founder Jack Ma’s business empire, Alibaba’s market value has fallen by more than two-thirds from its peak at the end of 2020.

After its valuations were hit by regulatory actions and increased tensions between Communist China and the United States, SoftBank has tried to reduce the relative size of Communist China’s tech in its portfolio.

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Translator: Himalaya NZ Translation Team
Design&editor: HBamboo(昆仑竹)

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