Softbank Corp. (9984), Japan’s third- largest mobile-phone company, plans to raise 200 billion yen ($2.6 billion) selling shares of a subsidiary to help finance its acquisition of Vodafone Group Plc. (VOD)’s Japan unit.
SFJ Capital Ltd., a Cayman Island unit of Softbank, will set terms next month for the sale of the preferred stock, which will be offered to individuals and investors in Japan, Takeaki Nukii, a spokesman for Tokyo-based Softbank, said today.
The proceeds from the planned sale will help pay for Softbank’s $5 billion acquisition of financial instruments from Vodafone, the mobile-phone company said in a statement today. The sale will have a minor impact on Softbank’s earnings, the company said.
The preferred securities will be recorded as minority interests on Softbank’s consolidated balance sheet, it said.
Mizuho Securities Co. and Deutsche Securities Inc. will handle the offering, which will be rated as ‘BBB+’ by Japan Credit Rating Agency, according to the statement.
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