|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's Range||26.12 - 26.47|
|52 Week Range||12.20 - 27.38|
|Beta (5Y Monthly)||1.51|
|PE Ratio (TTM)||3.68|
|Forward Dividend & Yield||0.21 (0.78%)|
|Ex-Dividend Date||Mar 27, 2020|
|1y Target Est||N/A|
SoftBank Group Corp has no plans to increase board oversight of its $100 billion Vision Fund, two sources said, disregarding calls from activist investor Elliott Management and signalling governance reforms have stopped short of the fund. In recent months Chief Executive Masayoshi Son has met other Elliott demands, from launching a 2.5 trillion yen ($23 billion) buyback - vital to propping up SoftBank's share price - to increasing the number of outside directors including the board's only woman. U.S. hedge fund Elliott asked SoftBank to create a subcommittee at board level to oversee and aid the Vision Fund's investment process, sources previously told Reuters.
SoftBank Group Corp <9984.T> has no plans to increase board oversight of its $100 billion Vision Fund, two sources said, disregarding calls from activist investor Elliott Management and signalling governance reforms have stopped short of the fund. In recent months Chief Executive Masayoshi Son has met other Elliott demands, from launching a 2.5 trillion yen ($23 billion) buyback - vital to propping up SoftBank's share price - to increasing the number of outside directors including the board's only woman. U.S. hedge fund Elliott asked SoftBank to create a subcommittee at board level to oversee and aid the Vision Fund's investment process, sources previously told Reuters.
(Bloomberg) -- In late 2018, as Deutsche Bank AG executives mulled the future of their troubled lender, Chairman Paul Achleitner encouraged them to emulate a payments firm that had become a wunderkind of German finance: Wirecard AG.The two companies were already close. Deutsche Bank was a key lender to Wirecard and its chief executive officer, Markus Braun, who also sat on one of its regional advisory boards. Andreas Loetscher, an Ernst & Young partner who had overseen several audits of Wirecard’s results, had recently joined Deutsche Bank as chief accounting officer. DWS, the bank’s asset-management unit, was a shareholder.Yet behind the scenes, doubts were growing whether the fintech’s success was for real. Deutsche Bank’s investment bankers argued its accounts were opaque and the stock overvalued, and risk managers sought ways to cut their exposure without rattling markets. Over the course of the following year, Deutsche Bank unwound or hedged most of some $300 million it had agreed to lend to Braun and his firm -- while its asset management arm kept piling in, an analyst upgraded the stock and its bankers helped the firm raise debt.This story of Deutsche Bank’s ties to Wirecard is based on accounts of people with direct knowledge of the events who spoke on condition of anonymity. It spotlights the complicated relationship of Germany’s financial elite with a company that was belittled at first, then admired and eventually bedeviled when it imploded in a spectacular accounting scandal last month. Now Deutsche Bank is coming full circle, considering a financial lifeline for parts of the firm that only last year approached it about an all-out merger.A spokesman for Deutsche Bank declined to comment on the lender’s ties to Wirecard.Wirecard’s StoryWirecard’s allure for the world of German finance is hard to overstate. Started as a payments provider to gaming and adult entertainment websites, it was the butt of jokes at first on the executive floors of some German lenders. Yet as the country’s financial industry struggled to adapt to tighter regulations and negative interest rates after the 2008 financial crisis, the startup from the suburbs of Munich somehow bucked the trend.Suddenly here was a young company that seemed to enjoy spectacular growth by applying technology to the plumbing of payments, and shareholders loved it. The company’s market value had exploded since the financial crisis, eclipsing 150-year-old Deutsche Bank. By late 2018, Wirecard replaced Commerzbank AG in Germany’s benchmark DAX Index.Achleitner, at the meeting in Hamburg in late 2018, asked why Deutsche Bank’s transaction bank wasn’t getting the same attention as Wirecard’s. He was looking to bolster Deutsche Bank’s own payment business after naming Christian Sewing CEO earlier that year -- an executive with extensive experience in corporate banking.Shortly after that meeting, in January 2019, the Financial Times published the first in a series of articles alleging accounting irregularities at a unit of Wirecard, sending the shares into a tailspin. The payments firm -- and even regulators -- brushed it off as the work of short sellers seeking a quick profit, but the FT stood by its reporting throughout.At Deutsche Bank, some executives grew alarmed, including Garth Ritchie, the head of investment banking at the time. Ritchie’s skepticism had arisen in part from conversations with hedge-fund clients that had conducted their own research into the firm’s workings, and who had been betting against the stock. His unit oversaw a 150 million-euro loan to Braun that was secured by Wirecard shares, so if the shares fell, the bank could lose a lot of money.Risk managers led by Stuart Lewis, Deutsche Bank’s chief risk officer, were also worried. The lender had agreed to provide around 120 million euros to Wirecard as part of that firm’s revolving credit facility, but the payments company was expanding very rapidly and Deutsche Bank didn’t fully understand all the factors at play. They reduced their exposure and increased their hedge in the wake of the FT story.Kirch LawsuitLewis also shared Ritchie’s concern about the margin loan to Braun. The debt was due for renewal at the end of 2019, but some traders wanted to get rid of it before. Yet doing so could send a message to markets that Germany’s largest lender had lost confidence in the company and might push Wirecard over the edge. Deutsche Bank itself would be at risk of another billion-dollar lawsuit like the one with the heirs of of Leo Kirch over the collapse of his media group, which dragged on for more than a decade until 2014.The allegations in the FT were weighing on Wirecard’s shares, but the company was still more valuable on the stock market than Deutsche Bank. And so, in the spring of last year, its executives were discussing an audacious step that would have given them a way out: a full-fledged merger with Deutsche Bank. They approached the Frankfurt lender, but the bank quickly ended the exploratory talks.Wirecard did score a victory around that time in efforts to restore market confidence. In April, SoftBank Group Corp., the Japanese telecommunications operator turned tech investor, agreed to put 900 million euros into the German company, giving a boost to the stock. Nooshin Nejati, an equity analyst at Deutsche Bank in Frankfurt, changed her rating on Wirecard to buy from hold the following month and predicted that its shares would soar about 40% to 200 euros within a year.Fund managers at DWS were also bullish on Wirecard. Over the course of the year, the firm increased its holding from less than 2 million shares to over 7 million. The biggest purchase came right after the Wirecard’s share price plunged more than a fifth in the span of a few days following another critical FT report. Stock pickers led by Tim Albrecht went all in.DWS and Albrecht declined to comment. The investment firm said last month it plans to file a lawsuit against Wirecard and Braun.Albrecht saw the October selloff as a chance to lock in big gains down the road, he said in a recent newspaper interview. His 4.1 billion-euro DWS Deutschland fund upped its stake by more than 3.5 million shares between September and December 2019, according to data compiled by Bloomberg and company filings. DWS Aktien Strategie Deutschland and DWS ESG Investa both more than doubled their holdings over the same period.Just as they piled in, executives in Deutsche Bank’s twin towers across the street from DWS made up their mind about Wirecard. Softbank, whose April announcement was seen as a sign of confidence in Wirecard, had since gotten cold feet and was setting up a complex transaction to sell off the investment and avoid putting up money itself.Deutsche Bank’s investment bankers had been offered, informally, a chance to help on the convertible bond Wirecard was planning to sell as part of the Softbank agreement, but they declined because they didn’t want the risk on their books. They did help Wirecard raise a separate, 500 million-euro bond in September, but that debt was sold on to other investors.By early November, Deutsche Bank’s risk managers decided that they wouldn’t renew the margin loan to Wirecard CEO Braun. They rolled over part of the debt and set up a repayment plan. Braun eventually got another loan, from Oldenburgische Landesbank, a small regional lender backed by private equity investors including Apollo Global Management, according to people familiar with the matter.When Wirecard spiraled toward insolvency this spring -- after admitting that more than $2 billion that it had claimed to have in assets probably didn’t exist -- the loan to CEO Braun was no longer on Deutsche Bank’s books. And while the firm is among a group of 15 lenders owed some 1.6 billion euros by Wirecard, its actual exposure is closer to 70 million euros, assuming the credit facility was 90% drawn down. By comparison, Commerzbank, ABN Amro Bank NV and ING Groep NV are each owed more than twice as much, Bloomberg has reported.But Deutsche Bank remains exposed on other fronts. DWS needs to explain losses from the investment to its clients. Loetscher, Deutsche Bank’s chief accountant, is the target of a criminal complaint for his role in Wirecard’s audits while he was working for E&Y.“There are many unresolved questions around Wirecard,” said Sebastian Kraemer-Bach, a spokesman for Deutsche Bank in Frankfurt. “We highly appreciate working with Andreas Loetscher,” he said, adding that the presumption of innocence applies. Loetscher declined to comment.Deutsche Bank is now considering buying Wirecard’s banking operations, which have been ringfenced from the rest of the payments company by BaFin, the German regulator. Options include taking on pieces of Wirecard Bank or the unit in its entirety, people familiar with the matter said, adding that the lender is still debating other ways to help Wirecard Bank and hasn’t made a final decision.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Britain has joined forces with India's Bharti Global to buy the collapsed satellite operator OneWeb, with the two sides pledging $1 billion between them to develop a fleet of low earth orbit satellites to boost broadband and other services. Under the deal announced on Friday, Britain will invest $500 million and take a significant equity share in OneWeb while Bharti will invest the same amount and provide commercial and operational leadership.
(Bloomberg) -- SoftBank Group Corp. shares just reached a new high this year, propelled by a series of buybacks that have seen the stock recoup the losses suffered during the coronavirus market rout.The stock rose 2.6% on Friday to 5,778 yen ($54), the highest since July 2019. That’s more than double the level of a March low.The recovery is something of a vindication for CEO Masayoshi Son, who unveiled plans to sell 4.5 trillion yen of assets to reduce debt and bankroll record share buybacks. Son has frequently complained that SoftBank’s shares, even at their peak, trade at less than the value of its portfolio of investments.SoftBank has also had a series of wins over the same period, finally solving the puzzle of Sprint Corp. and T-Mobile Inc. with their merger completed in April, and seeing a welcome return to successful investment bets as online home-insurance provider Lemonade Inc. surged as much as 86% in its U.S. IPO. Thursday.“The steps being taken to improve its balance sheet, such as repurchase of its debt, are being recognized,” said Tomoaki Kawasaki, a senior analyst at Iwaicosmo Securities Co.SoftBank shares have had a volatile run over the past year as portfolio companies such as WeWork ran into trouble and the coronavirus hammered many of its businesses. That triggered a record 1.36 trillion yen operating loss for the last fiscal year. Optimists believe the worst is over for the company.“After the trillion-yen level writedowns last quarter, it’s not possible that it’ll be worse than that,” said Kawasaki.Citigroup Global Markets analyst Mitsunobu Tsuruo raised his price target for the stock by 100 yen to 7,200 yen on Wednesday, lifting his expectations for the company’s forthcoming first-quarter earnings and noting that there is “still plenty of room for the shares to advance” given the buybacks and steps to clean up its balance sheet.SoftBank has already repurchased 500 billion yen of shares based on a resolution adopted March 13, separate to its 2 trillion yen pledge. Under that larger program, it has already formally announced plans to buy 1 trillion yen of buybacks through next March, with Son indicating he hoped to carry out the full amount. Investors can “feel confident” in buying and holding SoftBank shares until the buybacks are 90% done, according to Atul Goyal, senior analyst at Jefferies Group. Whether the shares can continue their increase depends on future catalysts, Iwaicosmo’s Kawasaki said.“The shares will need another catalyst that boosts shareholder value, such as the second Vision Fund,” he added.Son said in May that SoftBank will use its own cash for the second Vision Fund for now, until an improved investment performance attracts outside partners.(Adds Jefferies comment in fourth-last paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- It’s been six months since we got to enjoy a SoftBank Vision Fund exit.(1) Thankfully, Lemonade Inc. doesn’t disappoint.Founded in Israel and based in New York, its stock had a great first-day pop, despite pricing below its most recent private valuation. The company is a web-based provider of insurance to renters and landlords. After asking a few questions, such as address and living situation, Lemonade gives a quote for monthly coverage.Management believes that Lemonade has a technological edge in calculating risk that will ensure it collects more in premiums than it will pay out in claims. Yet a look at Lemonade’s mission statement tells what you really need to know about why this is a very SoftBank kind of company. Harness technology and social impact to be the world's most loved insurance company.Seriously. Lemonade doesn’t just want to be loved. “We are making insurance more delightful, more affordable, more precise, and more socially impactful,” it promises (emphasis added). The words “delight” or “delightful” appear 34 times in its prospectus.When you remember that SoftBank Group Corp.’s most famous, and infamous, investment to date — The We Co. — had a mission to “elevate the world’s consciousness,” it’s understandable why boss Masayoshi Son just couldn’t resist. Son’s outfit loves Lemonade so much that it owns 21.8%, diluted from 27.3% after the $319 million offering in New York.Like a couple of other SoftBank unicorns that have since gone public — Uber Technologies Inc. and Slack Technologies Inc. — Lemonade has been losing money. CEO Daniel Schreiber told Bloomberg Television’s Emily Chang that the company is on a path to profitability, with losses per dollar of insurance premiums sold shrinking. More recently, business has been “little impacted by the epidemic, much to our surprise,” he said.In truth, earnings don’t actually matter to investors as long as the shares rise and SoftBank gets to book paper profits.This debut comes just as the SoftBank and its Vision Fund recover from a disastrous March quarter, followed by a rebound in the June period. According to the prospectus, Lemonade was valued at $42.21 per share in its last funding round, which closed in September. An initial offer document, dated June 30, had Lemonade priced between $26 and $28 apiece, which means SoftBank would have taken a haircut of around 33%, or about $170 million, in the three months to the end of June.The massive 139% pop Thursday on the New York Stock Exchange reverses SoftBank’s loss immediately, but can only be realized in the current quarter, which still has a long way to go. Buckle up for another roller-coaster ride.What’s even more SoftBank-like about this investment is the ownership structure. According to the prospectus, SoftBank and other venture capital firms, along with officers and directors, beneficially own a mathematically impossible 135% of the stock.On paper, Schreiber and co-founder Shai Wininger hold 28.3% and 29% respectively, while Mwashuma Nyatta — a managing partner at SoftBank Group International — has 21.8%. Except, not really. Those three don’t own all of that stock, but they’re the only members of a “joint investment committee having sole voting and dispositive control” over the shares held by SoftBank. So, while SoftBank owns a fifth of the company, it’s handing that voting power back to the founders, who then claim “beneficial ownership.” Having seen the need to push Travis Kalanick out of Uber and Adam Neumann from WeWork, you’d have thought SoftBank may have learned its lesson about giving founders too much control. To be clear, there’s no suggestion that Schreiber or Wininger deserve to be shown the door, but when you own 22% of the stock, you’d think that a certain amount of voting rights may come with it.But this is SoftBank, and we’ve all learned to expect its investments and exits to be somewhat “delightful.”(1) The previous IPO, OneConnect Financial Technology Co., has gone on to be a blockbuster.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Google and Temasek Holdings Pte are in negotiations to join a funding round of between $500 million and $1 billion for Indonesian e-commerce giant PT Tokopedia, according to people familiar with the matter.Tokopedia, the online marketplace backed by SoftBank Group Corp.’s Vision Fund, has held talks with U.S. internet giants including Facebook Inc., Microsoft Corp. and Amazon.com Inc., the people said. But Google and Temasek have been more active in their negotiations and those talks may conclude in coming weeks, they said, asking not to be identified because the discussions are private.America’s largest internet corporations have looked increasingly toward Asia as growth in the U.S. and Europe slows, seeking to tap the region’s rapidly growing smartphone-savvy population. Facebook is buying a stake in India’s Jio Platforms, while its WhatsApp unit struck a deal last month to invest in ride-hailing and food delivery giant Gojek. Representatives for Tokopedia and Temasek declined to comment. Google didn’t respond to an email seeking comment.The backing of Alphabet Inc.’s Google and Singaporean state investment firm Temasek would mark a major boost for one of Southeast Asia’s biggest e-commerce operators. Tokopedia co-founder and Chief Executive Officer William Tanuwijaya built the country’s most valuable startup after Gojek after scoring early backing from SoftBank founder Masayoshi Son and Alibaba Group Holding Ltd. co-founder Jack Ma. It now plans to list shares at home as well as in another as-yet-undecided location, Tanuwijaya told Bloomberg News in October.Read more: SoftBank’s Bet on Sharing Economy Backfires With CoronavirusTokopedia came close to finalizing its latest financing this year before news emerged of a recent data theft attempt that may have affected 15 million of its users, one of the people said. It was also held back by the Covid-19 pandemic, which is rapidly changing the online shopping landscape in the world’s fourth most populous nation.E-commerce platforms are now moving quickly to serve the millions of people forced to make their first online purchases during widespread lockdowns. Singapore-based rival Shopee -- a unit of Sea Ltd. -- is catching up, while Alibaba last month appointed a longtime veteran to head up Lazada and “fight harder” as competition heats up.Indonesia has become a key battleground between the regional rivals: The country’s e-commerce market is projected to expand from $21 billion in 2019 to $82 billion by 2025, according to a recent study by Google, Temasek and Bain & Co.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Convertible bonds that were part of a complex transaction that allowed Japan's SoftBank Group <9984.T> to buy a stake in now-collapsed payments company Wirecard and then de-risk the transaction have been put up for sale in an auction. In a process managed by Credit Suisse, bonds convertible into Wirecard debt with a nominal value of 900 million euros ($1.01 billion) will be sold via an auction set to close on July 8, according to a document seen by Reuters. Many of Wirecard's creditors are eager to sell their exposure to the now-insolvent company, as police have raided the German firm's offices and its administrator has started selling its assets.
The successful public offering of (LMND) the so-called Insurtech backed by (9984) is a vote for digitizing an insurance industry that is hundreds of years old to provide better and cheaper coverage for customers, Tim Bixby, the company’s chief financial officer, told Barron’s. Lemonade (ticker: LMND) went public Thursday on the New York Stock Exchange and saw its shares rocket 139% in its first day of trading. “We’re excited to add a bunch of new, amazing investors who seem pleased about our future prospects,” Bixby said.
Insurtech Lemonade surged in its Wall Street debut. The company sold 11 million shares at $29 each, above its $26 to $28 estimated range.
The strong performance comes after Lemonade raised $319 million late Wednesday. The company sold 11 million shares at $29 each, above its $26-$28 price range.
Lemonade Inc. shares more than doubled soon after their debut Thursday as the mobile-based insurance start-up launched its initial public offering. Late Wednesday, Lemonade priced its IPO at $29 a share, above an already elevated range, and on Thursday shares skyrocketed as much as 120% to an intraday high of $63.87 as trading on the New York Stock Exchange began. The company is offering 11 million shares, with underwriters getting the option for another 1.7 million to cover overallotments. The rally sent Lemonade's valuation to $3.39 billion. That places Lemonade well above the $1.7 billion valuation resulting from a $300 million investment round led by SoftBank Group Corp. in April 2019.
(Bloomberg) -- Lemonade Inc., the online home insurance provider backed by SoftBank Group Corp., jumped as much as 86% after raising $319 million in its U.S. initial public offering.Shares of the company opened at $50.06 and rose as high as $53.96 in New York trading Thursday. It sold 11 million shares at $29 apiece on Wednesday after marketing them at $26 to $28 each, statements show.Lemonade was trading at $53.36 at 11:45 a.m., giving it a market value of about $2.9 billion, based on its number of outstanding shares.The debut is the latest market test for unprofitable, venture capital-backed companies as the coronavirus pandemic spurs an investor flight to safety. Shares in automative retailer Vroom Inc. have more than doubled since it went public last month.Lemonade has been unprofitable since its inception in 2015, it said in its prospectus. It reported a $36.5 million net loss in the three months ended March 31 compared to a net loss of $21.6 million during the same period last year. Its sales have more than doubled in that period.SoftBank led a $300 million funding round in Lemonade last year, valuing the company at $2.1 billion at the time, Bloomberg News previously reported. SoftBank will own a 21.8% stake in the company upon the IPO, the filing shows. Sequoia Capital Israel and General Catalyst are also among backers.Goldman Sachs Group Inc., Morgan Stanley, Allen & Co. and Barclays Plc led the offering and Citadel Securities was designated market maker for the listing. Lemonade shares are trading on the New York Stock Exchange under the symbol LMND.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The bulls were impressed by its $100 billion tech-focused Vision Fund, which it co-owns with other major investors. The bears often highlight the messy performance of SoftBank's investments, including Uber's disappointing IPO and WeWork's failed IPO, the slow growth of its domestic telecom business, and the potential impact of the new Japanese recession.
(Bloomberg) -- The brief, controversial alliance between SoftBank Group Corp. and Wirecard AG is nearing a close with the unwinding of both a marketing partnership and financial instruments behind a 900 million-euro ($1 billion) investment last year.Complex securities used to offload SoftBank’s risk on its Wirecard investment last year are going to be unwound after the German payments company’s collapse triggered a liquidation of the notes’ underlying collateral, according to a notice sent to investors Wednesday that was seen by Bloomberg. The notes were backed by Wirecard convertible bonds, which will now be sold off in a process overseen by Credit Suisse Group AG.The repackaged securities were issued to institutional investors in October 2019 through a deal arranged by Credit Suisse. The Wirecard convertible bonds backing the notes will be offloaded through a modified Dutch auction set to take place around July 8, Wednesday’s notice shows.Wirecard and SoftBank announced a strategic partnership in April last year that was seen as a vote of confidence in the troubled German company, which had been fending off accusations about its accounting for more than a decade. As part of the deal, SoftBank agreed to invest 900 million euros through a five-year convertible bond.Read more: How German Fintech Darling Wirecard Fell From Grace: QuickTakeStock SurgeThe deal did much to support a run-up of about 20% in the German payments processor over the next several months. By September 2019, the stock reached 150 euros apiece, well above the convertible bond strike price. The notes were issued with an annual coupon of 1.9% and could be converted into Wirecard shares if they hit a strike price of 130 euros, terms seen as favorable to the Japanese investment firm.In order to take some of its profit on Wirecard’s rally, without diluting the German firm’s shares or signaling to the market a loss of faith, Credit Suisse arranged the sale of 900 million euros worth of notes exchangeable into Wirecard shares through special purpose vehicle Argentum Netherlands BV, using the original convertible bond as collateral and allowing SoftBank an early payout on its investment.Read more: Deutsche Bank Weighs Aiding Bank Unit of Scandal-Torn WirecardThe securities were designed to protect the SoftBank group from Wirecard’s credit risk while still leaving room to benefit from the upside, according to a person familiar with the matter. In the end, the group booked a profit at the time of the conversion, but there was no additional profit, the person said, asking not to be identified because the information is private.Missing CashThere’s also been no activity on SoftBank’s marketing agreement with Wirecard since October after further revelations of suspect accounting activities appeared in the press, the person said. The investor had made a number of introductions between Wirecard and its portfolio companies, some of which resulted in memorandums of understanding about potential collaboration, the person said, asking not to be identified because the decision was private.A representative for SoftBank declined to comment on the company’s relationship with Wirecard. Wirecard has said it’s not making further statements to the press at the moment and didn’t immediately respond to a request for comment.Wirecard applied for protection from creditors after investigations revealed that 1.9 billion euros previously reported as cash was missing from its accounts and probably never existed. On Monday, a Munich court appointed Michael Jaffe as its preliminary insolvency administrator.Wirecard’s shares dropped 33% to 3.21 euros at 4:18 p.m. in Frankfurt trading. The stock has declined about 97% this year.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Moody's SF Japan K.K. has assigned definitive rating to SoftBank Corp. A mobile telephone terminal Credit Trust Series 2020-6 backed by handset installment sales receivables, originated by SoftBank Corp. The Seller entrusts a pool of installment sales receivables and cash to the Asset Trustee, and, in turn, receives the Senior Trust Certificates, the Class A through D Seller Trust Certificates and the Subordinated Trust Certificates.
SoftBank Group Corp (OTC: SFTBY) is looking to move away from the troubled Wirecard AG (OTC: WRCDF) after it helped arrange a $1 billion lifeline for the German firm a year before its downfall. What Happened According to the sources of the Wall Street Journal, SoftBank wants to terminate its five-year partnership agreement, struck in April 2019, with Wirecard. SoftBank was to introduce Wirecard as a digital payments provider to its portfolio of technology companies under the agreement. Under the agreed terms, SoftBank would have also introduced Wirecard to the Japanese and South Korean markets.Wirecard is under investigation by the European Union after it reported $2.1 billion in cash had gone missing.Why It Matters One of SoftBank's investment arms had infused nearly $1 billion into Wirecard in April 2019 through a convertible bond, noted the WSJ.The Japanese conglomerate did not invest any of its own funds into Wirecard. Instead, the money was funneled into Wirecard through the personal accounts of a number of SoftBank's employees and one outside investor. Wirecard's shareholders have filed a criminal complaint against the company's auditors EY. SoftBank is also mulling legal action against the auditors.The bank's $100 billion Vision Fund, which invests in startups, reported losses amounting to $16.5 billion due to soured investments in firms such as WeWork and Uber Technologies Inc (NYSE: UBER).Price Action SoftBank's OTC stock closed 2.98% higher at $25.93 on Wednesday. Wirecard's OTC stock closed 39.47% lower at $4.60 on Wednesday. Image: WikimediaSee more from Benzinga * UAW President Gamble Meets U.S. Attorney Probing Corruption At The Union * Google Puts Off Reopening Offices As Coronavirus Infections Escalate * Virgin Galactic Gets Closer To Obtaining FAA License, Prepares To Reveal Spacecraft Cabin(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Shares in Lemonade, the SoftBank-backed home insurance start-up, more than doubled on their first morning of trading, valuing the company at more than $3bn. The shares were priced at $29 each in the IPO, but by lunchtime in New York had reached more than $60. Chief executive Daniel Schreiber played down the first day bump in the price.
(Bloomberg) -- Lemonade Inc., the online home insurance provider backed by SoftBank Group Corp., is set to raise $319 million in its U.S. initial public offering.The company will sell 11 million shares at $29 apiece, Lemonade said in a filing, confirming an earlier Bloomberg News report. It was marketing 11 million shares at $26 to $28 each after boosting the range from $23 to $26, according to filings with the U.S. Securities and Exchange Commission.At $29, Lemonade would have a market value of $1.6 billion, based on the number of shares outstanding listed on its IPO filings.SoftBank led a $300 million funding round in Lemonade last year, valuing the company at $2.1 billion at the time, Bloomberg News previously reported. SoftBank will own a 21.8% stake in the company upon the IPO, the filing shows. Sequoia Capital Israel and General Catalyst are also among backers.Lemonade has yet to turn profitable since its inception in 2015, it said in its prospectus. It reported a $36.5 million net loss in the three months ended March compared to a net loss of $21.6 million during the same period last year. Its sales have more than doubled in that period.The company allows customers to buy insurance policies on a mobile app after answering several questions. It also pledges to donate the leftover funds, after expenses, to a charity in order to discourage fraudulent claims.While the company is headquartered in New York, it has roots in Israel and it has 123 full-time employees there, its filing showed.Goldman Sachs Group Inc., Morgan Stanley, Allen & Co. and Barclays Plc are leading the offering. Citadel Securities is the designated market maker for the listing.Lemonade will list on the New York Stock Exchange Thursday under the symbol LMND.(Updates with details from statement in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Lemonade Inc. , a mobile-based insurance start-up that seeks to court millennials, priced its initial public offering above the expected range Wednesday. After the close Wednesday, Lemonade priced 11 million shares at $29 apiece, above the already increased range of $26 to $28 from earlier in the day. Underwriters have another 1.7 million shares to cover overallotments over the next 30 days. The stock is expected to begin trading under the ticker "LMND" on the New York Stock Exchange on Thursday. The IPO price values the company at $1.64 billion should all options be exercised, just shy of the $1.7 billion valuation calculated from a $300 million investment led by SoftBank Group Corp. in April 2019.
On Tuesday, U.S. business analytics firm Dun & Bradstreet Holdings Inc raised $1.7 billion in its IPO after it sold more stock than expected and at a price above its indicated range. The indicated price range earlier on Wednesday was raised to between $26 and $28 per share.
SoftBank Group Corp -backed insurance startup Lemonade Inc raised $319 million in its U.S. initial public offering (IPO), a person familiar with the matter said on Wednesday. This was above its indicated price range, which it had raised to between $26 and $28 per share earlier on Wednesday.
(Bloomberg Opinion) -- What’s more perplexing, a company that can’t seem to avoid due diligence failures, or one that throws its name behind a controversial partner without putting in a dime? Investors in SoftBank Group Corp. may have seen a bit of both. Now, its entanglement with Wirecard AG leaves shareholders wondering exactly what kind of business they’ve been sinking their money into.Over the past year, SoftBank’s $80 billion startup splurge has quickly unraveled, as WeWork imploded and the initial public offering of Uber Technologies Inc. fell flat. But unlike WeWork, Wirecard won’t force SoftBank to write down any assets — because the tech conglomerate never put money into Wirecard itself.Instead, SoftBank facilitated a 900 million euro ($1 billion) convertible bond deal for the German digital payments company. Without requiring any SoftBank cash, the deal appeared to give the company’s stamp of approval to Wirecard, which had faced scrutiny over its accounting for years before admitting that 1.9 billion euros had gone missing from its accounts.(1) Wirecard’s shares soared more than 25% between the announcement of the tie-up and its signing.The outlines of this offering emerged in April 2019. It was eventually sold to Mubadala Investment Co. — Abu Dhabi’s sovereign fund, and the second biggest backer of the Vision Fund after Saudi Arabia’s Public Investment Fund — as well as a few senior SoftBank employees, according to the Financial Times.This instrument gave investors the option to convert their holdings into 6.9 million Wirecard shares, or 5.6% of the company at the time, at 130 euros per share — just over a 5% premium. To convince its existing holders to accept this dilution, Wirecard talked at length of the “economic benefits” of a strategic partnership with SoftBank, from geographic expansion into Japan and South Korea, to access to the Vision Fund’s vast portfolio, according to an invitation to Wirecard’s annual general meeting last June. “The potential on the equity side is much, much higher than the potential dilution,” then-CEO Markus Braun, who has since resigned, said at the time of the announcement. SoftBank echoed similar sentiments. But shortly after Sept. 18, 2019 — when the companies’ strategic tie-up was signed, and Wirecard’s stock was trading at 158 euros per share — Credit Suisse Group AG repackaged and resold those instruments, which were issued just hours before, to a broader group of investors at substantially less attractive terms. In other words, Mubadala et al got some of their Wirecard stake for free, thanks to SoftBank. Now that Wirecard has filed for insolvency, one can’t help wondering why SoftBank got involved in the first place. After a series of high-profile due diligence errors, SoftBank can ill afford any brush with a company battling corporate governance issues. This question is particularly relevant right now, because the Japanese tech giant is rapidly closing its conglomerate discount through aggressive share buybacks and sales of its most prized assets.On March 23, founder Masayoshi Son unveiled a 4.5 trillion yen ($42 billion) asset sale and an additional 2 trillion yen share repurchase over the next year. SoftBank’s conglomerate discount has since narrowed to just 29%, compared with 65% during its mid-March low, according to Bernstein Research. On average, SoftBank sported a valuation discount of 38% after the initial closing of the Vision Fund in 2017, using the firm’s methodology.SoftBank has more than doubled in market value since mid-March, and is now up 15% for the year. But once the company sells off its best holdings, its net-asset-value discount is only set to widen again. Such metrics reflect business behavior, history, strategy and vision, all of which are getting worse at SoftBank. As the Wirecard drama unfolds, it may well turn into this year's WeWork, another public-relations disaster for Son.(1) In early 2019, the Financial Times published a series of investigative reports questioning Wirecard’s internal controls.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Shuli Ren is a Bloomberg Opinion columnist covering Asian markets. She previously wrote on markets for Barron's, following a career as an investment banker, and is a CFA charterholder.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The company intends to sell 11 million shares in the IPO at a target range of $26 to $28 per share, according to a filing. The insurance startup was valued at $2.1 billion last year after it raised $300 million in a funding round led by Japan's SoftBank, and included insurer Allianz SE, Alphabet Inc's and venture capital arm GV.
Indian startups with Chinese funding and Chinese smartphone makers are actively touting their Indian-ness to users as they seek to address a growing wave of nationalism following a deadly border clash between the two countries earlier this month. A skirmish between India and China at a disputed Himalayan border site left 20 Indian soldiers dead, adding to anti-China sentiments brewing since the coronavirus pandemic began. Traders have since made calls to boycott Chinese goods, New Delhi has delayed Chinese imports at ports and on Monday, in its strongest move yet, India banned nearly five dozen Chinese apps including TikTok.