Morning Tidings

Tag: SoftBank

  • SoftBank Reportedly Selling Stake Worth USD 150 Million in Logistics Firm Delhivery Through Block Deal

    SoftBank Reportedly Selling Stake Worth USD 150 Million in Logistics Firm Delhivery Through Block Deal

    New Delhi, November 16: Japanese investment giant SoftBank is going to sell its stake worth $150 million in logistics firm Delhivery, media reported on Thursday. According to Moneycontrol, citing sources, SoftBank is likely to sell the shares which equates to a around 4 per cent stake in Delhivery, via a block deal. SoftBank and Delhivery did not immediately comment on the report. SoftBank, via its subsidiary Svf Doorbell (Cayman), has a 14.6 per cent stake in the logistics firm. SoftBank Sues Social App IRL for Fraud, Seeks USD 150 Million in Damages

    “Softbank is looking to sell around 4 percent stake in Delhivery via the block deal route. The deal size is around $150 million,” the report said, citing sources. Logistics services provider Delhivery’s net loss in the September quarter (Q3) of the current financial year was more than halved to Rs 103 crore, while revenue increased by 8 per cent to Rs 1,942 crore, despite higher inflation and fund crunch. The company reported a loss of Rs 254 crore and revenue of Rs 1,796 crore in the same quarter of the previous year. SoftBank Reports Unexpected USD 6.2 Billion Loss in Second Quarter After WeWork Bankruptcy

    Last month, nearly 9.28 crore equity shares of online food delivery platform Zomato worth Rs 1,040 crore were offloaded on Friday in a bulk deal, likely by SoftBank. SoftBank, via its affiliate SVF Growth (Singapore) Pte, likely sold 1.09 per cent stake in Zomato in the bulk deal. Shares exchanged hands at an average price of Rs 111.20. SoftBank held a 2.17 per cent stake in Zomato (by September 2023 quarter).

    (The above story first appeared on Morning Tidings on Nov 16, 2023 11:21 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).

  • SoftBank Reports Unexpected USD 6.2 Billion Loss in Second Quarter After WeWork Bankruptcy

    SoftBank Reports Unexpected USD 6.2 Billion Loss in Second Quarter After WeWork Bankruptcy

    Tokyo, November 9: SoftBank Group posted an unexpected 931 billion yen ($6.2 billion) net loss in the second quarter, compounding the pain for shareholders and founder Masayoshi Son after one of the group’s biggest bets, WeWork, filed for bankruptcy earlier this week, a media report said.

    It was the fourth consecutive quarter in the red for the Japanese conglomerate, as gains from the initial public offering of chip designer Arm failed to offset pain from the weak yen and worse than expected writedowns in private market valuations in the three-month period ending September, Financial Times reported. WeWork Goes Bankrupt: Workspace Provider Company Files For Bankruptcy in US.

    Analysts had expected a net profit of 180.8 billion yen, according to S&P Capital IQ. The group had made 3 trillion yen in net profit in the same quarter last year after selling a stake in Chinese e-commerce group Alibaba, the report said.

    “It was a disappointing quarter. We didn’t expect them to take impairment charges for private investments and at a higher rate than the last quarter,” said Kirk Boodry, a SoftBank analyst at Astris Advisory in Tokyo, highlighting $2.9 billion of writedowns in the private portfolio at the group’s flagship Vision Funds, Financial Times reported.

    “There was an expectation when they took some pretty steep writedowns in the fourth quarter that they had sort of kitchen-sinked everything,” Boordy added.

    SoftBank said on Thursday that after some accounting adjustments, its tech-heavy Vision Funds made an overall investment gain of $300 million in the second quarter — with Vision Fund 1 making a gain of $2.5 billion on the back of selling its stake in Arm to SoftBank, but Vision Fund 2 fell to a $2.1 billion loss. Its LatAm Funds also made a $100 million loss, Financial Times reported. WeWork Stock Halted As Rumours Swirl About Bankruptcy Preparations for the Office Sharing Company.

    The Vision Funds’ public portfolio lost value in the second quarter for the first time in 12 months, according to Boodry, driven by a reversal in fortunes for logistics companies such as warehouse robotics group AutoStore, as well as consumer fintech Better, after it listed through a merger with a special purpose acquisition company in August.

    (The above story first appeared on Morning Tidings on Nov 09, 2023 06:20 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website morningtidings.com).

  • Paytm Shares Tumble Nearly 11% After Reports of SoftBank Starts Process To Sell 4.5% Stake

    Paytm Shares Tumble Nearly 11% After Reports of SoftBank Starts Process To Sell 4.5% Stake

    New Delhi, November 17: Shares of One97 Communications, Paytm’s parent firm, on Thursday tumbled nearly 11 per cent following reports that Japan-based SoftBank has started the process to sell a 4.5 per cent stake in the company in a block deal.

    The stock tanked 10.31 per cent to settle at Rs 539.55 on the BSE. During the day, it went lower by 11 per cent to Rs 535.20. At the NSE, it fell 10.78 per cent to settle at Rs 536.60. The company’s market valuation eroded by Rs 4,021.85 crore to Rs 35,013.52 crore on the BSE. #stockmarkets Funny Memes & Jokes Go Viral After Zomato, Paytm Shares Fall, Sensex Tumbles 774 Points, Nifty Slips Below 17,400 Mark.

    On traded volume terms, 43.24 lakh shares were traded at the BSE and over 5.72 crore shares at the NSE during the day. SoftBank has started the process to sell a 4.5 per cent stake in One97 Communications for about USD 200 million (around Rs 1,627 crore) in a block deal, according to sources. Vijay Shekhar Sharma, CEO of Paytm, Arrested and Released on Bail in February For Ramming Into DCP’s Car.

    The development comes immediately after the lock-in period for Paytm’s investors to trade shares ended. SoftBank is the second largest shareholder with a 17.5 per cent stake in the company.

    According to two sources aware of the development, SoftBank has offered to sell shares in the price band of Rs 555 to Rs 601.55 apiece that are held through its subsidiary SVF India Holdings.

    SoftBank expects to raise around USD 200 million at the lower end of the price band of Rs 555. The deal may fetch SoftBank around USD 215 million at the upper end.

    SoftBank had invested USD 1.6 billion in Paytm in the last quarter of 2017 and offloaded shares worth USD 220 million at the time of the launch of IPO (Initial Public Offering).

  • SoftBank in Talks to Invest USD 500-600 Million in Flipkart: Sources

    SoftBank in Talks to Invest USD 500-600 Million in Flipkart: Sources

    New Delhi, Jun 4: SoftBank Group is in discussions with Flipkart to pump in about USD 500-600 million into the Walmart-owned e-tailer, according to sources. If the deal goes through, SoftBank will re-enter Flipkart’s cap table three years after it sold its entire stake in the e-commerce major to Walmart.

    Sources said Flipkart is in talks with various investors to raise funding, including SoftBank that is expected to invest about USD 500-600 million (Rs 3,652 crore – Rs 4,382 crore). The transaction – which may also see participation from Singapore’s sovereign wealth fund GIC and Canadian pension fund CPPIB – could value Flipkart between USD 30-32 billion, they added.

    SoftBank declined to comment, while Flipkart did not respond to emailed queries. GIC and CPPIB could not be immediately reached for comments. After its USD 16 billion investment in Flipkart in 2018, Walmart had led a USD 1.2 billion funding round in 2020 that valued the e-commerce company at USD 24.9 billion post-money. Flipkart is also said to be working on launching an initial public offering (IPO) next year.

    One of the persons close to the development said that Flipkart, and the e-commerce segment as a whole, has seen significant growth during the pandemic and investors are keen on tapping into this opportunity.

    E-commerce has seen strong growth in the country amid the pandemic as containment measures introduced millions to the convenience of online shopping, and prompted seasoned online shoppers to buy more. Social distancing compulsions, massive smartphone base and reliable broadband have galvanised e-commerce uptake beyond metros, deep into smaller cities and towns.

    These platforms are ramping up capacities and hiring to cater to the growth in order volumes. A fresh infusion of capital will also provide Flipkart with more ammunition to compete against rivals like Amazon and Reliance’s JioMart.

    SoftBank had sold its approximately 20 per cent share after Walmart agreed to buy a 77 per cent stake in Flipkart for USD 16 billion in 2018. SoftBank has been aggressively investing in India over the past few years, backing companies including Paytm, Ola and Delhivery. Last month, SoftBank invested USD 250-million in banking technology startup Zeta, and led a USD 300 million (about Rs 2,201.7 crore) funding round in Meesho earlier this year.