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Investing.com – Softbank (OTC:SFTBY) has sold a part of its stake in carrier T-Mobile for $21 billion after suffering record losses in its Vision Fund, it said on Tuesday.
Alongside plans announced in May to divest a 5% stake in its Japanese wireless subsidiary Softbank Corp, the T-Mobile sale is part of the Japanese company’s $42 billion push to divest assets in order to pay down debt as well as finance stock buybacks.
SoftBank “needs to further enhance its cash reserves,” according to a statement on Tuesday, which also cited concerns for “a second and third wave of spread of COVID-19.” The statement added that the company may invest the proceeds in high-quality securities until they are used for buybacks or debt reductions.
The company acquired the T-Mobile stake earlier in the year, after T-Mobile’s $26.5 billion takeover of Sprint Corp was approved by U.S. regulators. Meanwhile, T-Mobile separately announced on Tuesday that it would hold a public offering of 133.5 million common shares.
Softbank (T:9984) shares surged up to 3% in earlier trading but were down 0.02% to JPY5511 ($51.55) by 12:51 AM ET (5:51 AM GMT).
