SoftBank Plans to Keep Alibaba Stake as Public Listing Looms

Softbank said it plans to keep its stake in Alibaba Group Holding Ltd. if China’s largest e-commerce company proceeds with what may be the biggest initial public offering since Facebook Inc.

The Tokyo-based wireless carrier holds about 37 percent of Alibaba, Yoshimitsu Goto, SoftBank’s general manager for finance, said in an interview. SoftBank hasn’t told Alibaba when to hold an IPO or where to hold it, Goto said. “Alibaba is among the most important companies in our group, so our plan is to hold the stake for a long period of time,” Goto said. “What’s important for us as a shareholder in Alibaba is that the company continues increasing its enterprise value. An IPO is just a passing point to do that.”

Alibaba is considering an IPO that could value the Hangzhou-based company at $190 billion, analysts at Sanford Bernstein said last month as the e-commerce company more than doubled second-quarter net income to $707 million. That potentially values SoftBank’s stake at $70 billion. SoftBank would have to discuss any decision about its Alibaba stake with the Chinese company’s management, Goto said.

SoftBank invested $20 million in Alibaba.com in 2000. The Japanese company, led by billionaire Masayoshi Son, now has Alibaba Chief Executive Officer Jack Ma on its board.

Connect and Share with Thousands of users @ www.lagdey.com