One of Alibaba Group’s largest shareholders will sell almost its entire stake in the company. SoftBank will reduce its presence in the capital of Alibaba from the current 15% to 3.8%. Given this news, the shares of the Chinese giant fell more than 5%.
The intention of the Japanese conglomerate SoftBank to divest almost all of its stake in one of the world’s largest companies was reported by the Financial Times.
SoftBank currently owns a 15% stake in Alibaba Group. The holding company plans to reduce its stake to 3.8% because the market downturn reduces the value of its investments in technology companies, the newspaper writes.
Following the news about SoftBank’s stake reduction, Alibaba Group’s shares on the Hong Kong stock exchange fell 5.2%. At press time, the company’s stock showed a 3.9% rise in New York trading.
In 2023, SoftBank has already sold $7.2 billion of Alibaba shares, in 2022, the holding company sold the company’s shares for $29 billion. SoftBank initially owned a 34% stake in Alibaba Group. In 2022, participation dropped from 23.7% to the current 15%.
Author:
Kirill Bilyk
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
