SoftBank Announces Physical Settlement And Transfer Of Alibaba Shares To Finance Subsidiaries

SoftBank Group Corp. (SFTBY.PK,SFTBF.PK) said its Board approved the early physical settlement of prepaid forward contracts corresponding to a maximum of approximately 242 million ADRs of Alibaba Group Holding Limited and the transfer of Alibaba shares to the Finance Subsidiaries in relation to the settlement. SoftBank Group expects that Alibaba shares beneficially owned by SoftBank will correspond to 14.6% following the physical settlement, a decrease from 23.7% as at the end of June 2022, of the total outstanding shares of Alibaba, which is a decrease below the 20% voting right holding ratio required to be deemed as an equity method associate. After the physical settlement, Alibaba is expected to cease to be an equity method associate of SoftBank.

SoftBank Group noted that the early physical settlement of the prepaid forward contracts and the transfer of Alibaba shares to the Finance Subsidiary are expected to have a positive impact on income before income tax in the consolidated and non-consolidated statements of profit or loss. SoftBank Group expects: gain relating to settlement of prepaid forward contracts using Alibaba shares of approximately 1.5 trillion yen; and gain on revaluation of Alibaba shares of approximately 2.4 trillion yen. Total estimated gain before tax expenses is approximately 4.6 trillion yen.

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