SoftBank Sets Itself Up for Next India Move -- WSJ
2018年5月24日 - 4:02PM
Dow Jones News
By Mayumi Negishi
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (May 24, 2018).
TOKYO -- SoftBank Group Corp. said Wednesday it has agreed to
sell its entire stake in India's Flipkart Group to Walmart Inc.,
clearing the way for SoftBank to step up investment in a Flipkart
rival.
The action ends weeks of uncertainty over where SoftBank Chief
Executive Masayoshi Son, who runs the world's largest technology
fund, is placing his bets in India's booming e-commerce market.
Walmart said earlier this month that it would take control of
Flipkart, India's largest e-commerce company, for $16 billion. Mr.
Son had wavered on whether to sell his Vision Fund's 21% stake to
Walmart as part of the deal.
A person familiar with the deliberations said SoftBank was
weighing tax considerations and the possible merits of keeping a
stake until a public listing of Flipkart shares, which Walmart has
said it plans within four years.
A SoftBank spokesman on Wednesday declined to comment beyond
confirming that Mr. Son decided to sell. Flipkart and Walmart
weren't immediately available for comment.
Mr. Son said earlier that the Walmart deal gave the SoftBank
Vision Fund's stake in Flipkart a value of about $4 billion, up 60%
from what it paid nine months earlier.
By pocketing his profit, Mr. Son can direct his energies
elsewhere in India. He told The Wall Street Journal last week that
he was considering a bigger investment in Paytm, a digital-payments
startup that also runs an online marketplace competing against
Flipkart and Amazon.com Inc.'s India unit.
SoftBank's Vision Fund invested $1.4 billion in Paytm parent
One97 Communications last year. It has since invested $110 million
alongside Chinese internet giant Alibaba Group Holding Ltd. into
Paytm's online retailer, Paytm E-Commerce.
SoftBank was an early investor in Alibaba, and the two companies
share many ties. Alibaba chief Jack Ma is on SoftBank's board.
The Vision Fund manages nearly $100 billion from backers
including the sovereign-wealth funds of Saudi Arabia and Abu Dhabi,
and companies such as Apple Inc., Qualcomm Technologies Inc. and
Foxconn Technology Group.
Write to Mayumi Negishi at mayumi.negishi@wsj.com
(END) Dow Jones Newswires
May 24, 2018 02:47 ET (06:47 GMT)
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