SoftBank will list mobile carrier unit worth up to $60B

SoftBank chief executive Masayoshi Son plans an IPO for the firm's telecom unit. Shizuo Kambayashi  AP

SoftBank chief executive Masayoshi Son plans an IPO for the firm's telecom unit. Shizuo Kambayashi AP

"With the IPO of SoftBank's Japan operations, the various parts of the company can continue to grow independently", company head Masayoshi Son said.

SoftBank Group Corp, Yahoo Japan Corp and Aeon Co Ltd plan to launch an online retail business, national broadcaster NHK reported on Friday. Swiss Re has a market cap equal to about $33 billion, said the journal. Son, who has said the information revolution is SoftBank's core business, has used earnings from his telecom operations to fund investments in overseas technology companies.

SoftBank (OTCPK:SFTBF, OTCPK:SFTBY) plans to list its mobile carrier unit (Japan's third largest carrier) within the next year to strengthen its finances after years of notable acquisitions. Previous year it bought a 15 percent stake in ride-sharing giant Uber - which sources said was worth $7.7 billion - while it also has piled cash into Uber's Chinese rival Didi Chuxing. Sales came in at ¥2.4 trillion, beating predictions of ¥2.3tn. Last year, Son formed the Vision Fund, raising $93 billion from big backers including Saudi Arabia and Apple Inc. In the past year SoftBank has seen little change, while its stake in Alibaba alone increased by about $60 billion.

The news yesterday came shortly before SoftBank announced a 20 percent jump in net profit in the nine months to December thanks to United States tax cuts and the strong performance of its huge investment fund. "Son needs to make it clear whether this is a telecommunications company or an investment fund".

Olympic Swimmer Accused Former USA Swimming National Team Coach Of Sexual Abuse
Kukors said she came forward to empower other survivors. "Each of us had to shake his hand after every practice". Shortly after she turned 18, Kukors said she and Hutchinson traveled to a swim meet out-of-state.

The company said that the Vision Fund and its companion Delta Fund has invested around $27.5 billion to date. Lane thinks one reason for the valuation gap is that shareholders are still largely telecom investors who want healthy dividend payouts, which SoftBank doesn't pay.

SoftBank also owns the SoftBank Hawks baseball club, which won last year's Japan Series, this country's equivalent of the World Series.

A finance industry source said Swiss Re had always been looking for an anchor shareholder who would recognise the full value of the company.

Spinning off the mobile unit is expected to raise capital and help improve the overall market cap for the Japanese giant, and it will be an important piece of Softbank CEO Masayoshi Son's investment goals going forward. That could bring a huge number of potential insurance customers - from ride-share drivers to dog walking app users - into what Son calls his "synergy group" of companies.

Latest News