Digital IndiaGlobalNewsTechnology For SMEs

SoftBank Set for Japan Telco IPO

Sharing is caring!

SoftBank Group confirmed its plans to issue an IPO of its Japanese telecoms business in order to offer some separation from its other investment activities.

Reuters reported the cash raised will be used to strengthen the balance sheet and for group growth. Previous reports suggested the Japan-based company may look to raise up to $18 billion.

In a statement, the company said it is accelerating its global investment activities through SoftBank Vision Fund and in other ways, in order to drive overall growth of the group. It said a great number of group companies are “playing critical roles in technology sectors” including communications, internet, artificial intelligence, smart robotics and IoT, while following their own strategies to expand their businesses

By listing shares in SoftBank, the companies “expect that the respective roles and valuations of SoftBank Group, the parent company that is accelerating investments on a global scale, and SoftBank, a company core to the Group’s telecommunications business, will be clear, making it possible to communicate information regarding the Group’s businesses to the market with greater clarity and thereby better respond to the various needs of investors”.

There was the caveat: “a decision to not list SoftBank shares could be made following reviews and studies conducted during the preparation process”.

Group Earnings

The announcement came as SoftBank Group reported its financials for the nine months to 31 December 2017. Net income attributable to shareholders increased 20 per cent year-on-year to JPY1 trillion ($9.3 billion), on revenue which increased 3.5 per cent to JPY6.8 trillion.

Operating income (excluding SoftBank Vision Fund and Delta Fund) decreased 1.8 per cent to JPY912 billion, as growth in Sprint was offset by weakness in the domestic Japanese business, Yahoo Japan, ARM and in the distribution business (including an impairment charge related to its Brightstar business).


Story Reference: Mobile World Live 

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

Related Articles

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Back to top button
%d bloggers like this: