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Softbank Group shares slide 3% after Didi, Arm, Grab triple setback -Breaking

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© Reuters. FILEPHOTO: Tokyo (Japan), February 4, 2021. REUTERS/Kim Kyung-Hoon//File Photo

HONG KONG, (Reuters) – Shares of Japanese conglomerate SoftBank Group Corp fell more than 3% Friday following three disappointing events for the tech giant. These included a bad Nasdaq debut by Grab ride-hailing company Grab.

SoftBank has invested in massive amounts around the globe, sometimes in major technology companies, whether it is doing so directly or via its Vision Fund.

After falling to $57.89 on Friday, its shares were slightly lower but still lost 23% during the following three weeks.

Didi Global, a Chinese ride-hailing firm, is owned 21.5% by Vision Fund. The company had announced earlier Friday that it would be delisting from New York Stock Exchange in order to seek a Hong Kong listing. This decision was made after Chinese regulators raised concerns about data security.

Just an hour earlier, Nvidia Corporation (NASDAQ:) sued the U.S. to prevent its planned acquisition by SoftBank of Arm, a British chip provider, for over $80 billion. The deal will add to the already substantial global regulatory issues.

Just hours prior, Grab, Southeast Asia’s most popular ride-hailing service, plunged more than 20% on their Nasdaq debut.

Grab is Grab’s biggest shareholder, holding 18.6% of company.

Shigetoshi Kamada, general manager of Tachibana Securities’ research division said that “as long as such information is available, we would need to wait and keep off buying SoftBank Group.” We have to buy SoftBank’s shares whenever we find negative indicators about it.”

Last month, the group suffered a loss of $22 million in its second quarter due to a drop in share prices at its portfolio companies.

SoftBank Group spokesperson stated that they did not have a comment on the FTC’s objection to Arm’s purchase by Nvidia.

Also, he declined to speak on Didi’s plan to withdraw from the New York Stock Exchange and Grab’s debut share. He said that these were investments made directly by SoftBank and not the Vision Fund.

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