SoftBank to sell nearly all its stake in Alibaba – FT

(Reuters) -SoftBank Group Corp has moved to sell almost all of its remaining shares in Alibaba (NYSE:) Group Holding Ltd, the Financial Times reported on Wednesday citing regulatory filings it had analyzed.

The forward sales, which FT analyzed based on filings sent to the U.S. Securities and Exchange Commission, will eventually cut SoftBank’s stake in the Chinese e-commerce group to just 3.8%, according to the report.

The Japanese group, led by billionaire founder Masayoshi Son, has sold about $7.2 billion worth of Alibaba shares this year through prepaid forward contracts, the report added.

SoftBank told FT the Alibaba transactions reflected its shift to “a defensive mode” to address a more uncertain business environment, and added the company would provide details of the deal in its quarterly results announcement in May.

Alibaba and SoftBank did not immediately respond to Reuters’ requests for comment. Alibaba’s U.S.-listed shares dropped 1.3% in after-market trade.

SoftBank booked a gain of $34 billion last year by cutting its stake in Alibaba to 14.6% from 23.7%, as the firm sought to shore up its cash reserves amid steep losses incurred by its Vision Fund unit.

Alibaba has lost more than two-thirds of its value from the highs it touched in late 2020, hit by Beijing’s crackdown on the tech sector that included a hefty fine on Alibaba and scrutiny of founder Jack Ma’s business empire.