Softbank Says Additional Alibaba ADS Not Tied to Any Specific Future Softbank Transaction

Reuters2022-02-09

TOKYO, Feb 9 (Reuters) - Alibaba's recent registration of additional American Depository Shares is not tied to any specific future transaction by SoftBank Group Corp, a spokesperson for the Japanese conglomerate said on Wednesday.

"The registration of the ADR conversion facility (F6 filing, which was filed by Alibaba), including its size, is not tied to any specific future transaction by SBG," SoftBank said in a statement to Reuters.

E-commerce giant Alibaba last week filed to register an additional one billion American Depository Shares. The move, Citigroup analysts said this week, "might also suggest potential selling intention by SoftBank."

"Since Softbank has been a pre-IPO investor, we believe a large proportion of those shares have not been previously registered as ADS," Citi analysts including Alicia Yap wrote.

SoftBank's stake of around 25% in Alibaba is worth around $82 billion and has its origins in a $20 million investment in 2000. Alibaba's shares have fallen by 60% since highs in October 2020.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Limwy
    2022-02-10
    Limwy
    No more spreading of fake news again. 
  • Dindindino
    2022-02-09
    Dindindino
    Like pls
  • HENRYCSC
    2022-02-09
    HENRYCSC
    Good 
  • Joelchua
    2022-02-09
    Joelchua
    Could the need for additional ADS signal demand from another whale then?
  • DragonKC
    2022-02-09
    DragonKC
    Speculation news always rock the stock markets. Those who made the comments was speculator for their own gain. 
  • tkj
    2022-02-09
    tkj
    Wow...$20 mil becomes $82 billion.....
Leave a comment
24