Tag: Japan SoftBank

Apple, Nvidia join SoftBank’s Arm IPO as strategic investors

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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SoftBank Group Corp. has lined up some of Arm Ltd.’s biggest customers as strategic investors for the chip company’s initial public offering, including Apple Inc., Nvidia Corp., Intel Corp. and Samsung Electronics Co., according to people familiar with the situation.

The investors also include Advanced Micro Devices Inc., Cadence Design Systems Inc., Alphabet Inc.’s Google, Synopsys Inc., among others, said the people, who asked not to be identified because the details haven’t been announced. SoftBank has been in discussions with Arm customers and partners for months, but the plans are just being finalized now. Still, the specifics could change as the company gets closer to the IPO, which is expected to have its investor roadshow underway by next week.

The investors will put in amounts ranging from $25 million to $100 million, according to the people.

The show of support from some of the tech industry’s biggest names will help bolster the offering, which is expected to raise $5 billion to $7 billion. SoftBank, which acquired Arm in 2016, was previously aiming to value the chip business at $60 billion to $70 billion, but the figure could be more in the range of $50 billion to $60 billion, Bloomberg has reported.

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Representatives from AMD, Arm, Google, Nvidia and Synopsys declined to comment. Apple, Cadence, Intel and Samsung didn’t immediately respond to requests for comment.

SoftBank is capitalising on investor interest in the chip industry, which has benefited from spending on artificial intelligence equipment. The Philadelphia Stock Exchange Semiconductor Index has rallied this year, far outpacing the S&P 500 Index and other major indexes.

Arm provides chip designs and licenses technology that’s a crucial part of the more than 1 billion smartphones sold every year. In recent years, it has tried to spread its reach into new areas, including computers used in data centres, seeking to be part of higher-priced electronic components.

Arm is considering pricing its shares on Sept. 13, and the stock will start trading the next day, Bloomberg reported earlier this week. The roadshow to promote the offering is expected to come after the US Labor Day holiday on Monday.

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Initially, Arm was looking to raise $8 billion to $10 billion, but the target was lowered after owner SoftBank decided to hold on to more of the company — a move that involved buying Vision Fund’s stake in the chip designer. That transaction valued the chip company at more than $64 billion.

A successful debut by Arm would be a boon for SoftBank Chief Executive Officer Masayoshi Son, whose Vision Fund lost a record $30 billion last year. It could also spur dozens of companies to pursue their own IPO plans. Online grocery-delivery firm Instacart Inc., marketing and data automation provider Klaviyo and footwear maker Birkenstock are all working on their own offerings.

Son doesn’t want to part with more than 10 percent of the company at this point, Bloomberg has reported.

Arm, based in Cambridge, England, has assembled a lengthy roster of underwriters for the IPO, reflecting both the company’s global reach and banks’ eagerness to land roles on big-ticket deals in a slow listings market. Barclays Plc, Goldman Sachs Group Inc., JPMorgan Chase & Co. and Mizuho Financial Group are leading the offering.

Also Read: Tech titans invest billions to ride the wave of Gen AI — their projects and more

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SoftBank sells stake in FirstCry to three Indian business family groups in Rs 435 crore deal – report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japanese conglomerate SoftBank has reportedly divested its stake in the prominent Indian e-commerce platform, FirstCry, to three Indian business family groups. This strategic move has translated to a substantial investment of approximately Rs 435 crore. The groups partaking in this venture are the MEMG Family Office led by Ranjan Pai, Sharrp Ventures spearheaded by Harsh Mariwala, and DSP Family Office helmed by Hemendra Kothari.

These significant investments were channeled through a secondary share sale, according to ET. Of particular note, Ranjan Pai’s MEMG Family Office undertook a noteworthy investment of Rs 250 crore into FirstCry on August 14. However, CNBC-TV18 has not been able to independently verify this news update.

Through this secondary share sale, SoftBank, which initially boasted a substantial 29 percent stake in the company, strategically pared down its ownership by approximately 1.5-2 percent. Supam Maheshwari, the Chief Executive of FirstCry, expressed gratitude to the early investors for their instrumental role in the company’s success.

“Our early investors have been instrumental in our success, and we are delighted to have helped deliver multi-fold return to our investors. I welcome our new investors who bring with them an exceptional track record and knowledge of scaling large successful businesses in India, that will be highly valuable in our journey ahead,” Maheshwari told ET.

FirstCry has also garnered significant support from notable investors such as Premji Invest, a subsidiary of Wipro’s visionary Azim Premji, and Mahindra Retail. Impressively, Premji Invest holds a substantial ownership stake ranging between 9-11 percent, while Mahindra Retail commands a noteworthy 12-13 percent stake.

Reflecting on this significant development, Ranjan Pai expressed his enthusiasm for the brand’s success, attributing it to the founders’ unwavering focus on exceptional execution. He conveyed his eagerness to capitalise on the burgeoning growth within India’s consumer sector and actively contribute to the advancement of this thriving segment, ET reported.

In addition to Ranjan Pai, SoftBank is reportedly in the process of selling its stake to two other Indian entities. SoftBank aims to value its stake at $3 billion, with the funding serving as a pre-IPO round for FirstCry. The sale is expected to formalize around $100 million worth of secondary shares, resulting in a reduction of SoftBank’s holdings to a portion of its initial 29 percent stake in the company.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Softbank representative to step down from boards of Paytm, Policy Bazaar

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japanese investor Softbank will pull out its representative from the boards of Indian listed entities Paytm and Policy Bazaar as part of its global policy, a source said on Monday. There will be no change in investment made by Softbank in these companies, the source said.

Softbank managing partner Munish Verma is currently a board member in both Paytm and Policy Bazaar who will step down from the position within a couple of days.

“As part of global policy, Softbank’s representative will step down from the board of listed companies in India. At present, there are two Indian entities in this case- Paytm and Policy Bazaar. These companies have been informed about the decision,” another source aware of the development said.

The source said that Softbank in 90 per cent of the portfolio companies globally has exited within six months. “The Indian companies need to inform stock exchanges. The development will take place in a day or two,” the source said.

Softbank declined to comment on the matter while a query sent to Paytm and Policy Bazaar did not elicit any immediate reply.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Oyo aims to raise $9 bn through its public offering: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SoftBank shares soar 13 percent after $5.5 billion share buyback news

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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SoftBank Group Corp shares jumped 13 percent on Thursday, a day after chief executive Masayoshi Son unveiled a $5.5 billion share buyback to prop up its share price, which he sees as undervalued.

SoftBank said after the market closed on Wednesday it would purchase up to 600 billion yen ($5.46 billion) of stock in its largest ever buyback, funded by the proceeds of its domestic telco’s December IPO.

It also announced a 60 percent jump in third-quarter operating profit, lifted by rising valuations of its growing technology investments.

On Wednesday Son made a 90-minute presentation outlining SoftBank’s investment strategy and what he sees as the chronic undervaluation of its shares.

While SoftBank’s market value is currently around 9 trillion yen, when its stakes in telco SoftBank Corp, the Saudi-backed Vision Fund, chip designer Arm Holdings and others are taken into account, the company’s holdings, net of debt, are worth 21 trillion yen, he said.

The buyback “puts a floor under SoftBank stock”, Jefferies analyst Atul Goyal wrote in a note.

SoftBank shares hit a high in September but tumbled on concerns about its financial ties to Saudi Arabia following the murder of Saudi journalist Jamal Khashoggi.

The benchmark Nikkei 225 index was flat in early trading.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SoftBank Corp rings up cost of turbulent year-end at first post – IPO earnings

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japan’s SoftBank Corp will be under pressure to outline growth plans when it reports its first earnings as a public company on Tuesday, as concerns over a changing mobile market keep its shares well below their blockbuster IPO price.

Investors will also be looking for reassurance in the results that the telco can keep its promise of paying 85 percent of annual profit in dividends. Others will be seeking any hint of the health of majority shareholder SoftBank Group Corp, which relies on the telco’s cash to fund investments.

“Even if profits don’t grow as planned, there will be a strong focus on stable dividend growth,” Satoru Kikuchi, an analyst at SMBC Nikko Securities, said in a report.

The results cover a turbulent three months at Japan’s third-largest mobile phone network provider. In October-December, the firm suffered a network outage, fielded ongoing government calls for lower prices, and faced scrutiny over its ties to Huawei Technologies Co Ltd – a Chinese company whose telecoms equipment Western powers fear could be used for espionage.

Pressure is set to continue in 2019 as market-leader NTT Docomo Inc trumpets its annual “return” of 400 billion yen ($3.64 billion) to customers and e-commerce firm Rakuten Inc becomes the fourth major wireless carrier from October pledging low prices.

The quarter also saw SoftBank conduct Japan’s largest-ever IPO. However, the stock dropped 15 percent on its December 19 debut from its 1500 yen IPO price, leaving its overwhelmingly domestic retail investors underwater and cooling broader investor sentiment, finance executives said.

The stock now trades about 20 percent below the 1,600 yen average target price of 13 analysts compiled by Refinitiv. Seven analysts recommend or strongly recommend buying the stock, whereas six suggest holding or selling.

Nomura Securities analyst Daisaku Masuno wrote in a report that SoftBank should be able to grow as market uncertainty fades through its strategy of appealing to heavy users through its industry-leading 50 gigabyte data plan while offering low-price plans through its Ymobile brand.

SoftBank forecasts operating profit to rise 10 percent to 700 billion yen for the year through March. That compares with the 691 billion yen average of 13 analyst estimates compiled by Refinitiv.

The firm will report third-quarter earnings at 15:00 (0600 GMT) and hold a briefing with Chief Executive Ken Miyauchi from 16:00. Refinitiv data showed just one analyst has published an estimate for third-quarter operating profit, at 167 billion yen.

The IPO furthered parent SoftBank Group‘s transformation into a technology investor, raising it 2.35 trillion yen and leaving it with two-thirds of the telco. The IPO also placed a value on one of the largest parts of founder Masayoshi Son’s empire, giving the telco a market capitalisation of 6.48 trillion yen ($58.99 billion).

However the valuation has done little to boost the parent’s stock price, which Son has called unreasonably low. The parent has risen 16 percent this year, but is still 27 percent below its September peak, having tumbled on concerns about financial ties to Saudi Arabia following the murder of a Saudi journalist.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

SoftBank in talks to take majority stake in WeWork, says source

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Japan’s SoftBank Group Corp is in discussions to take a majority stake in shared office space provider WeWork Cos, a source familiar with the matter said, a deal that would increase one of its biggest bets on a late-stage US startup.

Pricing and other details have yet to be firmed up, the source said, adding that it was not a done deal.

A second source also said SoftBank is in talks about a major new investment in WeWork. Both spoke on the condition of anonymity as the details of the talks were private.

The Wall Street Journal reported earlier that SoftBank’s investment could be between $15 billion and $20 billion and would likely come from SoftBank’s Vision Fund.

WeWork and SoftBank declined to comment.

SoftBank and its Vision Fund invested $4.4 billion in WeWork last year and the Japanese company holds two board seats.

WeWork’s prospects have been treated with skepticism by some Silicon Valley investors who see the company as an overvalued real estate play vulnerable to a property market downturn.

A majority stake by SoftBank, which has raised more than $93 billion to create the technology-focused Vision Fund, would be a shift from its more common practice of taking minority stakes in high-profile late-stage startups.

The two companies are closely entwined, with hundreds of SoftBank staff using space at the two companies’ Japanese joint venture and SoftBank considering moving its headquarters into WeWork offices.

Eight-year old WeWork is growing rapidly and in September surpassed JP Morgan, the biggest US bank, as the largest tenant of Manhattan office space, highlighting growing demand for flexible leases.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow