Softbank to Sell $7.9 Billion of its Stake in Alibaba

Softbank announced plans to sell US$7.9 billion of the shares it holds in Alibaba Group Holding Limited (“Alibaba”).

Specifically, the transactions are comprised of (i) the intended sale of $2.0 billion of Alibaba ordinary
shares to Alibaba, (ii) the intended sale of $400 million of Alibaba ordinary shares to members of the Alibaba Partnership acting collectively, and the sale of $500 million of Alibaba ordinary shares to a major sovereign wealth fund pursuant to an exemption from registration under the U.S. Securities Act and (iii) an intention to offer, subject to market conditions and other factors, $5.0 billion aggregate purchase price of its mandatory exchangeable trust securities exchangeable into American depositary shares of Alibaba in a private placement to qualified institutional buyers pursuant to Rule 144A under the U.S. Securities Act.

After the sale, Softbank would continue to hold approximately 28%3 of Alibaba’s total outstanding shares.

“When I first met Jack Ma, I knew immediately he had the vision and passion to build the world’s leading e-commerce company, and I was very happy to invest alongside him to help him realize his ambition.” said SBG Chairman and CEO Masayoshi Son. “This investment has been phenomenally successful and, over the past 16 years, we have built a close relationship, working together on many exciting projects. In that time, we have not sold any Alibaba shares. There are huge opportunities ahead for Alibaba and SBG looks forward to the continued partnership.”

http://www.softbank.jp/en/corp/set/data/news/press/sb/2016/20160601_02/pdf/20160601_02.pdf