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To reduce debt, SoftBank is selling back $685 million shares to GungHo Online

Sprint deal forces hand
To reduce debt, SoftBank is selling back $685 million shares to GungHo Online
Date Type Companies Involved Size
Jun 6, 2016 other GungHo Online Entertainment SoftBank $685m

Indebted Japanese internet outfit SoftBank Corp (TYO:9984) has agreed with GungHo Online (TYO:3765) to sell back 248.3 million GungHo shares.

That represent 23.5% stake of the company.

SoftBank currently holds 25.8% of GungHo shares.

Priced at ¥294, the deal would be worth $685 million

Cash out

The move follows years of acquisitions from SoftBank, which have left it with record debts of over $110 billion.

Some of its deals - such as GungHo, Supercell and Alibaba - have been positive, but the 2013 acquisition of US carrier Sprint - a $13.6 billion deal - has pulled down SoftBank shares ever since.

Indeed, SoftBank recently split in two so its better performing companies weren't being held back by Sprint's performance.

As well as GungHo, SoftBank is planning to sell $10 billion in Alibaba shares, and if rumours are to be believed, its 73.2% stake in Supercell.

[source: Bloomberg]