Financial News
Written by: Zhang Weilun
2020-12-09 14:14
Last update date: 2020-12-09 14:14
According to sources quoted by Bloomberg, the Japanese conglomerate, Alibaba (9988), the single major shareholder, SoftBank, intends to gradually repurchase this slow-baking method to allow the founder, Sun Zhengyi, who currently holds about 27% of the company’s shares, When the shareholding increases to 66% of the absolute majority of the shares, privatization will be carried out.
The shares of SoftBank currently held by shareholders other than Sun Zhengyi are valued at US$87 billion.
The report pointed out that the company did not respond
The report quoted an unnamed source who pointed out that SoftBank will continue to sell assets so that the company has enough cash to support its repurchase operations.
As other shareholders sell their holdings, as long as Sun Zhengyi does not sell the company's shares during the period, his holdings will gradually increase.
The report pointed out that when Sun Zhengyi's shareholding reaches 66%, other shareholders who hold the company's equity can be driven to sell their shares, and Sun Zhengyi will be able to purchase the relevant shares without raising a premium.
The company's stock price has rebounded sharply through a repurchase worth 13,500 yen.
Sun Zhengyi: Falling stock price will buy back more shares
Sources quoted in the report pointed out that this slow-motion acquisition allows the company to ensure the flexibility to buy back shares when the stock price drops.
If in a normal privatization plan, a premium of about 25% will be given for a convenience.
Although Sun Zhengyi pointed out in February this year that SoftBank is better to maintain its listing status, but earlier media including Bloomberg reported on the company's privatization news, but did not make a clarification.
In November this year, Sun Zhengyi pointed out that if the company's stock price drops, it will buy back more stocks.
The report also pointed out that when Softbank's stock price continues to fall, Sun Zhengyi will still propose a traditional privatization plan, but he will sell without mentioning the level of the stock price.
SoftBank sells its assets in succession
However, the report also pointed out that many opinions within the company are opposed to the privatization plan. On the one hand, the huge amount of cash owned by SoftBank is one of the obstacles to privatization.
Sun Zhengyi mentioned earlier that the company has about 80 billion US dollars in cash.
Softbank has ample cash levels and is related to the company's successive asset sales, including the sale of shares in companies such as T-Mobile US.
At the same time, privatization will make the company face the counterattack of investment rating companies, which will not be good for the company to deal with debt financing.
After the company is privatized, it will cause Son Zhengyi to conduct mergers and acquisitions in the market for a period of time, which makes him consider the privatization plan.
SoftBank first disclosed investment branch Northstar recorded a trading loss of 28.8 billion yuan
More than 360 billion yuan of Ali shares transferred to Hong Kong Softbank suspected of deploying selling?
Rumor has it that SoftBank's Vision Fund sets up a shell company for acquisition
SoftBank reduces its stake in Nippon Telecom by about 3 points and 1 stake, involving 81.1 billion yuan
SoftBank reportedly intends to privatize, soaring by more than 8% this morning, and another $40 billion in chip sales
SoftBank SoftBank privatizes Son Zhengyi
