It seems that SoftBank plans to hold onto their Alibaba Shares.
SoftBank Plans to Keep Alibaba Stake as Public Listing Looms
By Mariko Yasu, Takashi Amano & Yusuke Miyazawa - Nov 5, 2013 11:19 PM GMT-1000
SoftBank Corp. (9984) said it plans to keep its stake in Alibaba Group Holding Ltd. if China’s largest e-commerce company proceeds with what may be the biggest initial public offering since Facebook Inc.
The Tokyo-based wireless carrier holds about 37 percent of Alibaba, Yoshimitsu Goto, SoftBank’s general manager for finance, said in an interview. SoftBank hasn’t told Alibaba when to hold an IPO or where to hold it, Goto said.
“Alibaba is among the most important companies in our group, so our plan is to hold the stake for a long period of time,” Goto said. “What’s important for us as a shareholder in Alibaba is that the company continues increasing its enterprise value. An IPO is just a passing point to do that.”
Alibaba is considering an IPO that could value the Hangzhou-based company at $190 billion, analysts at Sanford Bernstein said last month as the e-commerce company more than doubled second-quarter net income to $707 million.
That potentially values SoftBank’s stake at $70 billion. SoftBank would have to discuss any decision about its Alibaba stake with the Chinese company’s management, Goto said.
He declined to comment on whether Alibaba earnings are reflected in SoftBank’s consolidated statements.
Earnings at Alibaba aren’t yet consolidated to SoftBank’s financial results and profit contribution by the Chinese company will probably start next fiscal year to compensate for losses stemming from Sprint, Daisaku Masuno, an analyst at Nomura Holdings Inc., said last month.
Alibaba is moving toward an IPO in the U.S. after talks with Hong Kong’s exchange broke down following management’s proposal to keep control in a share sale, two people familiar with the matter said in September. Alibaba will go public in 2014, people with knowl
I don't believe the only reason to own SoftBank is for Alibaba although most of the new investors do. Will you sell SoftBank after the IPO?
I like SoftBank's medium to long-term goals.
Here is SoftBank Corp's Group Structure (%'s are voting rights)
SoftBank Mobile Corp 100% (core company)
SoftBank BB Corp 100% (core company)
SoftBank Telecom Corp 100% (core company)
Sprint Corp 80.23%
eAccess, Ltd. 33.3%
Willcom Inc 100%
Wireless City Planning Inc 33.3%
Yahoo Japan Corp 42.5% (core company)
Gung-Ho Online Entertainment 58.5%
Alibaba Group Holding, Ltd 36.7%
Renren inc 34.1%
Fun Fact: Among many of their other investments they own the Fukuoka Softbank Hawks, a professional baseball team in Japan (shareholders are owners of a professional baseball team). 4th place 73W 69L 2T in 2013
Finally, there should be a dividend of 20 yen per SFTBF share and 10 yen per SFTBY share. About $ 0.20 USD and 0.10 USD per share before the foreign tax withholding.
Alibaba hasn't decided where and when it might list. Many believe it will be in 2014.
If it lists in the USA will you look at buying the stock directly? Will an ADR need to be created for it?
There is certainly a lot of hype surrounding this company and event.
Sentiment: Strong Buy
From the Softbank web site:
Alibaba Group Holding Limited
Share of voting rights
(as of March 31, 2013)
Regarding Softbank and Sprint, this article from the Kansas City Businees Journal is very interesting.
Is SoftBank trying to buy all of Sprint?
Alyson RaletzReporter- Kansas City Business JournalEmail
More than a two-thirds ownership in Sprint Corp. may not be enough for SoftBank Corp.
A new scenario laid out in a Securities and Exchange Commission filing requires SoftBank to go all in — or at least try if certain dominoes fall.
A recent change in the certificate of incorporation for Overland Park-based Sprint (NYSE: S) indicates SoftBank "must tender offer" to buy the rest of Sprint shares if SoftBank's ownership exceeds 85 percent. That's only 5 percent away from SoftBank's current Sprint stake, including its controlling interests.
"In such an event, SoftBank may, but is not obligated to, cause New Sprint to effect a merger or other business combination to acquire the New Sprint Common Stock not owned by SoftBank or its controlled affiliates," according to the SEC filing.
MORE INFORMATION: See the filing
A SoftBank spokeswoman didn't immediately respond to requests for an interview on the filing language.
The Tokyo-based wireless carrier, which bought a 78 percent stake in Sprint in June for $21.6 billion, slowly has been upping its stake.
SoftBank's ownership of Sprint reached 80.1 percent earlier this week after a series of small stock transactions. The breach of the 80 percent ownership threshold is expected to provide SoftBank with some tax benefits.
Sentiment: Strong Buy
Interesting comment about after hours trading. SFTBY trading in the US is like the after hours trade for the TSE.
9984 (SFTBF) opened Dec 4th on the TSE at 8420 Yen which would be approximately $41.27 for the SFTBY (conversion at $1 = 102.5 JPY)
Recent Price: (Trade Time) 8,470 (11:30) Net Change (%) -170 (-1.96%)
Open 8,460 Previous Close 8,640
High 8,630 Low 8,420
Year's High (Date) 8,660(2013/12/03) Year's Low (Date) 2,882(2013/01/24)
Volume 16,967,800 Turnover 144,542,024,000
Market Capitalization 10,373,705,553,600 Shares Outstanding 1,200,660,365
Trade Unit 100
Sentiment: Strong Buy
SFTBF is the equivalent of the TSE (Tokyo Stock Exchange) traded shares for 9984 (Japanese ticker) regular Softbank shares.
SFTBY is equivalent to 1/2 of the Softbank regular shares: 1 SFTBF = 2 SFTBY shares
Softbank shares moving today. Yahoo has been moving for a couple of days now..
I have both ordinary and ADR shares.