Funding Through the Issuance of Preferred Securities
August 29, 2011
by the Company's Subsidiary
SOFTBANK CORP. (hereafter “the Company”) announces that on August 29, 2011, it has resolved to raise JPY 200 billion through the Preferred (Restricted Voting) Securities (hereafter “the Preferred Securities”) issued by SFJ Capital Limited (a wholly-owned subsidiary of the Company incorporated in the Cayman Islands, British West Indies; hereafter “SFJ”).
The Company will record the Preferred Securities as minority interests on its consolidated balance sheets.
1. Background of the procurement of the Funds
In December 2010 the Company acquired the class 1 preferred stock and stock acquisition rights issued by BB MOBILE Corp. to Vodafone International Holdings B.V., and a subordinated loan by SOFTBANK MOBILE Corp. from Vodafone Overseas Finance Limited. Out of the total acquisition amount of JPY 412.5 billion the unpaid amount JPY 200 billion will become due in April 2012.*
- *Please refer to the press release “Acquisition of Preferred Stock, etc. Issued to Vodafone Group” on November 9, 2010
2. Use of the Funds
The Company will borrow the JPY 200 billion procured by SFJ through the issuance of the Preferred Securities, from Galilei Japan KK, a consolidated subsidiary of the Company (hereafter “Galilei Japan”); of this JPY 183.5 billion will be allocated for the payment described in “1” above. The remaining amount of JPY 16.5 billion will be allocated for redemption of the Company's corporate bonds to be redeemed by the end of July 2012. (See exhibit for an illustrated outline of the scheme).
3. Impact on the consolidated financial statements of the Company
The impact on the Company's consolidated statements of income for the fiscal year ending March 31, 2012 will be minor.
The Company will record the Preferred Securities as minority interests on its consolidated balance sheets. This will enhance the stability of the SOFTBANK Group's financial base.
As of today, the Company plans to redeem the Preferred Securities, when they become redeemable prior to the maturity in May 2015.
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