| To: Madharry who wrote (5914) | 12/9/2020 10:06:00 PM | | From: Glenn Petersen | | | | Softbank is on a winning streak.
This is interesting. Unfortunately, the full article is behind am paywall and I don't have subscription to Barron's.
SoftBank Stock Gains on Report It May Go Private. It Has a Huge Winner In DoorDash.
By Eric J. Savitz
Bloomberg
Dec. 9, 2020 12:13 pm ET
SoftBank stock got a lift on Wednesday from a report that the Japanese investment company is considering an unusual approach to going private.
According to Bloomberg, SoftBank (ticker: SFTBY) is debating a new strategy to go private gradually, by slowly buying back enough shares until founder and CEO Masayoshi Son has a big enough stake to squeeze out the remaining investors. The company this morning declined to comment on the report.
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| To: Glenn Petersen who wrote (5915) | 12/10/2020 7:34:11 AM | | From: Glenn Petersen | | | | The full article:
SoftBank Stock Gains on Report It May Go Private. It Has a Huge Winner In DoorDash.
By Eric J. Savitz
Barron's
Dec. 9, 2020 12:13 pm ET
SoftBank stock got a lift on Wednesday from a report that the Japanese investment company is considering an unusual approach to going private.
According to Bloomberg, SoftBank (ticker: SFTBY) is debating a new strategy to go private gradually, by slowly buying back enough shares until founder and CEO Masayoshi Son has a big enough stake to squeeze out the remaining investors. The company this morning declined to comment on the report.
This isn’t the first time that SoftBank has been reported to be considering going private. The underlying logic of the idea is that the company’s market cap is consistently far below the value of SoftBank’s assets. Earlier this year, SoftBank launched an aggressive program to boost its stock price by selling assets, buying back stock, and paying down debt, and the plan has worked like a charm—SoftBank shares have nearly tripled from their lows earlier in the year.
As of the company’s September quarter, it had sold off $53 billion in assets, and that’s not including the pending sale of the chip design house Arm to Nvidia (NVDA) for about $40 billion. The company has repurchased close to $13 billion in stock so far, including $1.6 billion repurchased in November alone, according to a disclosure by the company on Monday.
According to SoftBank’s own calculations—the company updates its net asset value on its website daily—the stock is still worth less than half of NAV.
Bloomberg posits that under the stealthy go-private plan, SoftBank would slowly continue to buy back shares, gradually increase Son’s holdings on a percentage basis from the current level, now about 27%. The story says that under Japanese securities laws, at 66% he could simply buy back the rest, possibly without paying a premium.
Meanwhile, the SoftBank Vision Fund is going to have one of its best days ever, thanks to the wildly successful debut on Wednesday for the food delivery company DoorDash (DASH). The company priced its initial public offering at $102, and appears likely to open as high as $170. SoftBank invested $2 billion in DoorDash, giving it about a 22% stake after the offering. At a stock price of $170, the position would be worth more than $10 billion.
SoftBank on Wednesday is up 4.3%, to $35.55. |
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| From: Glenn Petersen | 12/20/2020 4:00:55 PM | | | | | | Scoop: SoftBank to file for SPAC on Monday
Dan Primack
Axios
December 20, 2020
SoftBank on Monday will file to raise between $500 million and $600 million via an IPO of its first SPAC, Axios has learned from multiple sources.
Look ahead: The investment giant is said to be prepping at least two additional SPACs, which are blank check vehicles that raise money to buy a company and take it public via a reverse merger.
Details: As Axios previously reported, Goldman Sachs and Citigroup are lead managing the process, with the SPAC intended to buy a company in which SoftBank has not previously invested.
-- The SPAC sponsor will be SoftBank Investment Advisers, which manages the $100 billion Vision Fund and Vision Fund 2 (unknown size, funded entirely from SoftBank's balance sheet).
-- SoftBank has never before raised a SPAC, but it did have portfolio company
-- OpenDoor agree in September to be acquired by a SPAC at a $4.8 billion enterprise value. It also recently lost a pair of partners to Gores Group, where they'll focus on SPACs.
A SoftBank spokesperson declined to comment.
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| To: Glenn Petersen who wrote (5917) | 12/20/2020 8:21:06 PM | | From: Madharry | | | | | thanks for the info. Lots of moving parts with Softbank. I think starting these SPacs only makes sense if Son really intends to take Softbank private but we shall see. |
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| To: rebeccaaw who wrote (5919) | 1/1/2021 11:33:48 AM | | From: Madharry | | | | | june 2019. though in interest of fair disclosure i have sold some of my softbank stock and moved it into BABA after the sharp decline in BABA stock. |
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| From: Glenn Petersen | 1/6/2021 12:16:52 PM | | | | | | Nvidia’s $40 billion Arm acquisition to be investigated by UK competition regulator
PUBLISHED WED, JAN 6 202111:18 AM EST
Sam Shead @SAM_L_SHEAD
CNBC.com
KEY POINTS
-- The U.K.’s competition watchdog has announced that it plans to investigate Nvidia’s proposed acquisition of British chip designer Arm.
-- Nvidia said in September that it plans to Arm from SoftBank for $40 billion.
-- Critics have been calling on governments and regulators to probe the deal ever since.
LONDON — The U.K.’s competition watchdog, the Competition and Markets Authority, announced Wednesday that it plans to investigate Nvidia’s proposed acquisition of British chip designer Arm.
Nvidia announced plans to buy the Cambridge-headquartered company from SoftBank for $40 billion last September and critics have been calling on governments and regulators to probe the deal ever since.
The CMA said it is inviting third parties to provide their opinion on how the deal will impact competition in the U.K. before launching a formal investigation later this year.
“The chip technology industry is worth billions and critical to many of the products that we use most in our everyday lives,” Andrea Coscelli, chief executive of the CMA, said in a statement.
“We will work closely with other competition authorities around the world to carefully consider the impact of the deal and ensure that it doesn’t ultimately result in consumers facing more expensive or lower quality products,” Coscelli added.
With 6,500 staff, including 3,000 in the U.K., Arm is widely regarded as the jewel in the crown of the British tech industry. Its chips power most of the world’s smartphones, as well as many other devices.
Arm Chief Executive Simon Segars told CNBC in December that he expects regulators to “take a good look” at the deal.
“There are regulatory approvals to go through in many jurisdictions around the world,” Segars said last month. “That is a drawn-out process. There’s a lot of interaction that has to go on with the regulators to provide the information that they want.”
When the acquisition was announced, Nvidia and Arm said they hoped to complete the deal by early 2022.
Two British tech investors predicted last October that the acquisition will be blocked.
Nvidia did not immediately respond to CNBC’s request for comment.
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