SoftBank Group Company Update
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SoftBank is selling most of its shares in the ride-hailing group Uber because the world’s most active technology investors are lost heavily According to two people familiar with the matter, the company has another big bet on China’s Didi Chuxing.
A person familiar with the matter said that the goal of the Japanese conglomerate behind the US$100 billion Vision Fund is to sell about 45 million Uber shares and then hold 184 million shares. Sold 38 million Uber shares for approximately US$2 billion in JanuaryAnother person said that more shares were sold in June, and the latest transaction will make SoftBank’s holdings less than 100 million shares.
SoftBank’s investment in Uber dates back to 2017, when it agreed to acquire a 15% stake in the American group for approximately $7.7 billion, but these shares were later transferred to the Vision Fund.
According to calculations by the Financial Times, after Uber’s initial public offering in 2019, the fund conducted multiple divestitures. As of the end of June, its shares in Uber had fallen to less than 10%.
A person familiar with the transaction said that the latest sale has nothing to do with China’s recent regulatory crackdown on ride-hailing group Didi, which caused a loss in the Vision Fund’s US$4 billion investment. Another person said that the sale was decided after Didi’s share price plummeted this month.
This news was first reported by CNBC and caused Uber’s share price to fall 4% in post-IPO trading in the United States. SoftBank shares rose briefly by 3% in Tokyo trading on Thursday.
Following Blockbuster season In the first three months of this year, SoftBank’s fortunes have been reversed for the US$100 billion Vision Fund and its US$40 billion sequel fund backed by Saudi Arabia, and its investment in China has been severely cracked down on the technology industry by Chinese regulators.
According to estimates by Redex Research Advisory, since the beginning of the quarter that began in July, the value of the listed holdings of the two Vision Funds has fallen by 11 billion U.S. dollars, while the April-June quarter has increased by 1.1 billion U.S. dollars.
“SoftBank has been touting [the] The Flywheel of the Envision Fund’s IPO and four of the past six listings are all Chinese, but as China’s suppression of the reality deepens, this situation will gradually disappear,” says Kirk Boodry, a technology analyst at Redex. ) Express.
Earlier this month, after Chinese regulators announced a data security investigation of the company, Didi’s market value fell to 50% of its post-IPO peak. The Vision Fund is Didi’s largest shareholder, holding 20.1% of Didi’s shares, while Uber also holds 12% of Didi’s shares.
A few days after launching the Didi investigation, China’s cyberspace regulator turned to review the all-truck alliance of the logistics group backed by the Vision Fund, which caused its U.S.-listed stocks to plummet.
Recently, the Vision Fund’s investment in Chinese online education companies, such as the head, the job gang, and VIPThink, has been new rule This will prohibit companies that teach school subjects from making profits.