Recognition of Income on Equity Method Investments
Related to Receipt of Shares of Ant Financial by Alibaba
Alibaba Group Holding Limited (“Alibaba”), an associate of SoftBank Group Corp. (“SBG”), received newly-issued shares (a 33% equity interest) of Ant Small and Micro Financial Services Group Co., Ltd. (“Ant Financial,” operator of the electronic payment service Alipay) in September 2019, pursuant to the 2014 share and asset purchase agreement, as amended, among Alibaba, Ant Financial and others. The consideration paid by Alibaba to receive the newly-issued 33% equity interest in Ant Financial was funded by payments from Ant Financial and its subsidiaries to Alibaba in consideration for certain intellectual property rights and assets held by Alibaba. Following this, Alibaba recorded a gain of CNY 69.2 billion (USD 9.7 billion) in its financial results for the three-month period ended September 2019, which was the result from the transfer of such intellectual property and assets to Ant Financial and the basis difference determined based on Alibaba's share of Ant Financial's net assets, net of its corresponding deferred tax effect. Consequently, profit attributable to SBG of ¥277,175 million will be recorded in income on equity method investments in SBG's consolidated financial results for the six-month period ended September 30, 2019.
SBG will announce its consolidated financial results for the six-month period ended September 30, 2019 at 3:00 p.m. on November 6, 2019 (JST).
-
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 Such information is subject to change and may become out-of-date.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.
