Loan Repayment through Yahoo! Inc. Share Delivery and Record of Special Income
SOFTBANK CORP. (hereafter “the Company”) announces the loan repayment of approximately USD 1,135 million financed from CITBANK, N.A. by one of the Company's U.S. subsidiaries in February 2004 through the settlement of forward contracts related to the loan. In accordance with the contract terms, the Company will deliver Yahoo! Inc. shares as settlement for the related forward obligations. The repayment is scheduled to complete late September 2011. As a result of the settlement, the Company anticipates recording special income in the consolidated statements of income for the fiscal year ending March 31, 2012.
1. Summary of the transaction
The Company financed approximately USD 1,135 million from CITIBANK, N.A. through its U.S subsidiary in February 2004 by executing certain forward contracts which would be settled by the Company's delivery of Yahoo! Inc. shares held by its U.S subsidiary. (Please refer to the Company's press release issued on March 2, 2004, “ SOFTBANK announces financing through its U.S. consolidated subsidiary ”.) Upon maturity of the loan, shares of Yahoo! Inc. held by the Company's U.S. subsidiary will be delivered to CITIBANK, N.A. to settle these obligations.
2. Impact on the consolidated financial results for the fiscal year ending March 31, 2012 *1
In connection with the settlement of the obligations through deliver of the Yahoo! Inc. shares, the Company plans to record approximately JPY 76.4 billion of special income as gain on sale of investment securities in the consolidated statements of income for the fiscal year ending March 31, 2012. The impact on net income is expected to be approximately JPY 44.7 billion net of income taxes of approximately JPY 31.7 billion *2 .
- *1 The gain on sale of investment securities, the impact on net income and the income taxes are estimated values converted using an exchange rate of USD 1 = JPY 77.
- *2 Income taxes are assumed based on the gain on sale of investment securities multiplied by expected tax rate of 41.5%.
3. Others
As a result of settling the obligations in this manner, the SOFTBANK Group's ownership in Yahoo! Inc. will be reduced from approximately 4% to as low as 0.002%.
-
Releases, announcements, presentations and other information available from this page and elsewhere on this website were prepared based on information available and views held at the time of preparation and speak only as of the respective dates on which they are filed or used by SoftBank Group Corp. or the applicable group company, as the case may be. Such information is subject to change and may become out-of-date. Such information may also contain forward-looking statements which are by their nature subject to various risks and uncertainties that may cause actual results and future developments to differ materially from those expressed or implied by such statements. Please read legal notices in its entirety prior to viewing any information available on this website.
