Announcement on Recognition of Equity in Earnings of Affiliated CompaniesNov. 6, 2007
Alibaba.com Limited (Registered office: Cayman Islands, British province; Representative: David Wei; hereinafter ‘Alibaba.com’), subsidiary of Alibaba Group Holding Limited*1 (Registered office: Cayman Islands, British province; Representative: Jack Ma; hereinafter ‘Alibaba Group’) which is an equity method affiliate of SOFTBANK CORP. (hereinafter, ‘SOFTBANK’) went public on The Stock Exchange of Hong Kong Limited as of today.
In accordance with this listing, Alibaba.com issued 227,356,500 new shares, and 631,544,500 shares of Alibaba.com held by Alibaba Group were offered for sale*2, therefore a gain on sale of shares in subsidiary and dilution gain from changes in equity interest occurred for Alibaba Group. Along with this, SOFTBANK expects to record its interest of these gains on sales (after tax) as equity in earnings of affiliated companies for the third quarter of the fiscal year ending March 2008. The amount is yet to be fixed at the present and will be announced as soon as finalized.
- *1Company name has changed from Alibaba.com Corporation as of November 5, 2007.
- *2Alibaba Group may exercise an over-allotment option (maximum 113,678,000 shares).
- *3The percentage of ownership as recognized in SOFTBANK’s interim closing. The ratio is calculated as of at the end of June 2007.
- *4Equity method affiliate of SOFTBANK CORP.
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