SoftBank to book $34bn gain by cutting Alibaba stake to 14.6%

The estimated gain announced on Wednesday includes 2.4 trillion yen from the revaluation of shares in the Chinese e-commerce giant and a derivative gain of 0.7 trillion yen, SoftBank said in a filing.
Short Url
Updated 10 August 2022
Follow

SoftBank to book $34bn gain by cutting Alibaba stake to 14.6%

TOKYO: SoftBank Group Corp. on Wednesday said it will book an estimated gain of 4.6 trillion yen ($34.08 billion) on settling prepaid forward contracts using shares in Alibaba Group Holding, reducing its stake to 14.6 percent from 23.7 percent.

SoftBank on Monday booked a record quarterly net loss due to sliding valuations at its Vision Fund investment arm, with Chief Executive Masayoshi Son pledging to further reduce investment activity and cut costs.

The estimated gain announced on Wednesday includes 2.4 trillion yen from the revaluation of shares in the Chinese e-commerce giant and a derivative gain of 0.7 trillion yen, SoftBank said in a filing.

The transaction “will be able to eliminate concerns about future cash outflows, and furthermore, reduce costs associated with these prepaid forward contracts,” SoftBank said.

“These will further strengthen our defense against the severe market environment,” SoftBank added.

Son bought into Alibaba for $20 million in 2000 and the Chinese company’s growth that made it one of the world’s biggest e-commerce companies helped to burnish his tech investor credentials.

But Alibaba has lost more than two thirds of its value from highs in late 2020, hit by Beijing’s crackdown on the tech sector and its scrutiny of founder Jack Ma.

The SoftBank transaction is not expected to result in additional sales of Alibaba shares on the market as the shares were hedged at the time of the original monetization, SoftBank said.

Ties between the two companies have weakened, with Ma leaving SoftBank’s board in 2020 and Son stepping down from Alibaba’s board the same year.

The Japanese billionaire, who has also bet on ventures such as ridehailer Didi Global, has sought to emphasize the decreasing size of China tech in his portfolio as market turmoil has hit valuations and US-China tensions have increased.


Qualitative leaps and record numbers are leading the Kingdom’s fisheries sector toward global leadership: vice minister 

Updated 9 sec ago
Follow

Qualitative leaps and record numbers are leading the Kingdom’s fisheries sector toward global leadership: vice minister 

RIYADH: His Excellency the Vice Minister of Environment, Water and Agriculture, Engineer Mansour bin Hilal Al-Mushaiti, affirmed that the fisheries sector in the Kingdom has achieved qualitative accomplishments and record figures, with aquaculture production exceeding 192,000 tonnes.

This comes alongside the implementation of more than 410 projects in marine and inland waters, in addition to the export of approximately 59,000 tonnes of fishery products to more than 35 countries around the world, with a value exceeding SR1.3 billion ($346.66 million).

This was stated during His Excellency’s opening of the activities of the fifth edition of the Saudi International Marine Exhibition and Conference at the Riyadh International Convention and Exhibition Center, amid broad local and international attendance reflecting the exhibition’s growing stature as a regional and global specialized platform for the sector.

He stressed that the exhibition is no longer merely an event, but has become a global meeting platform, a growth driver, and a showcase reflecting the Kingdom’s leadership in the fisheries sector regionally and internationally.

He also underlined that this development is the result of the work of an integrated system that includes strategic planning, the development of policies and regulations, investor stimulation, and the capacity building of fishermen and practitioners.

These efforts have been led by the Ministry of Environment, Water and Agriculture, represented by the National Program for the Development of the Livestock and Fisheries Sector. They also include qualitative initiatives to support fishermen, regulate fishing activities, and develop port, transport, processing, and marketing services, positioning the Kingdom among advanced countries in the fisheries sector.

The vice minister of environment, water and agriculture also witnessed the signing of 13 memoranda, cooperation agreements, and investment contracts between a number of local and international entities, with an estimated value exceeding SR316 million.

These aim to develop investment opportunities in the fisheries sector, enhance the growth of local fishery exports to global markets, support fish and algae processing industries, and increase production efficiency to achieve food security and economic growth in line with the objectives of Saudi Vision 2030.

The exhibition, which runs for three days, is witnessing the participation of more than 30 countries and 120 exhibitors, and is expected to attract 15,000 visitors from various segments.

The event’s activities include 20 workshops in which 3,500 international and local investors and businesspeople are participating, in addition to 25 global speakers and experts.

Several countries are participating in the gathering, including China, Korea, Russia, and Norway, as well as  Spain, France, and Germany, alongside the Food and Agriculture Organization of the UN.

This presence reflects the diversity of international expertise and the depth of global interest in the fisheries and aquaculture sector.

At the conclusion of the ceremony, His Excellency toured the exhibition pavilions, reviewed prominent modern technologies and solutions in the fields of fisheries and aquaculture, and listened to exhibitors’ explanations of the latest innovations, products, and services. He stressed the importance of such exhibitions in transferring knowledge, supporting investment, and enhancing the competitiveness of the fisheries sector in the Kingdom.