SOFTBANK announces a partial sale of its holding in UTStarcom, Inc.Feb. 7, 2002
SOFTBANK CORP. announces that SOFTBANK America Inc. (Headquarter: Delaware, U.S.A., Representative: Masayoshi Son, “SBA”) decided to sell a part of its holding in UTStarcom, Inc. (Nasdaq:UTSI, Headquarter: California, U.S.A., “UTSI”).
SBA will sell 10,000,000 shares of UTSI, for an estimated aggregate purchase price of approximately US$214,000,000 based on the closing price as of February 6, $21.38 (translated amount in yen: approximately 28 billion yen, exchange rate: $1=133 yen). We will announce the amount of gain on sale of such shares after such amount is fixed. Although SBA’s stake in UTSI is expected to decrease from approximately 42% to approximately 32% after the transaction, SBA remains as the largest shareholder of UTSI and UTSI continues to hold an important strategic position with SOFTBANK Group.
The sale is one of many measures to improve our financial condition, and proceeds from the sale will be used to reduce consolidated net debt (debt minus liquidity on hand).
We have already announced as of December 28, 2001 that we expect to reduce net debt of nearly 100 billion yen from the proceeds of sale of shares of Yahoo! Inc. by SBA and the deconsolidation of Key3Media Group, Inc. In addition, SBA sold 18,000,000 shares of E*Trade Group Inc. for approximately 21 billion yen. We also expect to receive approximately 8.5 billion yen from the sale of 50,000 shares of SOFTBANK INVESTMENT CORPORATION (Headquarter: Minato, Tokyo, Representative: Yoshitaka Kitao, “SBI”) held by SOFTBANK FINANCE CORPORATION (Headquarter: Chiyoda, Tokyo, Representative: Yoshitaka Kitao) concurrently with the listing of SBI on the first section of Tokyo Stock Exchange.
An aggregated amount of approximately 150 billion yen including proceeds of 28 billion from the sale of UTSI shares, together with the above-mentioned transactions, will be used to decrease our consolidated net debt. As a result, we will make great strides in improving our financial condition.
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