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SoftBank’s Proceeds From Alibaba Sale to Reach $8.9 Billion

  • Japanese company is seeking to boost cash, pay down debt
  • SoftBank portfolio reshuffle may include further asset sales
Updated on

SoftBank Group Corp. said its sale of Alibaba Group Holding Ltd. stock will raise $8.9 billion, an infusion of cash that can be used to strengthen the Japanese company’s balance sheet and allow it act fast when making strategic investments.

Alibaba is paying $74 a share to buy back $2 billion of its own stock from SoftBank, which will also sell stakes worth $500 million apiece to two state-owned investment firms in Singapore at the same per-share price, Alibaba and SoftBank said. Another $400 million of shares will go to the Alibaba Partnership of senior executives. The total amount raised is $1 billion more than what SoftBank announced a day earlier.