Stock Groups

SoftBank seen trimming Alibaba stake to fill shortfall -analyst -Breaking

by Mike Robinson

[ad_1]

2/2
© Reuters. FILEPHOTO: SoftBank Group Corp’s logo was displayed during the SoftBank World 2017 conference, Tokyo, Japan. REUTERS/Issei Kato

2/2

Sam Nussey

TOKYO, Reuters – SoftBank Group Corp will likely reduce its stake in Chinese ecommerce giants Alibaba (NYSE:) An analyst stated Tuesday that the Japanese tech conglomerate invested in startups unlisted through its second Vision Fund, and then repurchased its shares.

SoftBank was able to sell 20 million Alibaba shares over the past quarter. Atul Goyal (Jefferies analyst) wrote that SoftBank “will have to sell more” in 2022.

Goyal predicts that the group will require $40 to 45 billion in cash in the next year, depending on whether it continues its current investment in startups or share repurchases under the 1 trillion yen (8.7 billion) program announced in November.

SoftBank earlier this month stated that Alibaba did not register a U.S. Share Facility and it had no plans to decrease its stake. But, there is a lot of expectation from the group to cut its assets in light of the fallout from the sale to Nvidia of chip designer Arm.

($1 = 114.5100 yen)

Disclaimer: Fusion MediaWe remind you that this site does not contain accurate or real-time data. CFDs include stocks, indexes and futures. Prices are provided not by the exchanges. Market makers provide them. Therefore, prices can be inaccurate and differ from actual market prices. These prices should not be used for trading. Fusion Media does not accept any liability for trade losses you may incur due to the use of these data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. Trading the financial markets is the most risky investment form. Please make sure you are fully aware of all the costs and risks involved.

[ad_2]