Sale of All Shares in Subsidiary Brightstar Global Group Inc.

SoftBank Group Corp. (“SBG”) today announced that, on September 17, 2020 (U.S. time), it has entered into a definitive agreement with Brightstar Capital Partners (together with its affiliates, “BCP”), a U.S.-based private equity firm focused on partnering with founders, entrepreneurs and management teams, whereby SBG will sell all of its shares in Brightstar Global Group Inc. (“BGG”), a wholly owned subsidiary of SBG and the sole parent company of Brightstar Corp. (“Brightstar”), a global leader of end-to-end device lifecycle solutions for carriers, retailers, and enterprises, to a newly formed subsidiary of BCP (the “Transaction”), for a consideration consisting of cash proceeds and a 25%^* stake in a newly formed subsidiary of BCP, which will hold all of BGG shares. The Transaction is subject to regulatory approvals and other customary closing conditions. The Transaction is expected to close before the end of SBG’s fiscal year ending March 31, 2021.

Upon completion of the Transaction, BGG and Brightstar will cease to be subsidiaries of SBG and will no longer be consolidated into SBG’s financial results.

SBG acquired Brightstar in January 2014 as part of its efforts to further strengthen the competitive position of subsidiaries, such as Sprint Corporation and SoftBank Corp., that operate telecommunications businesses. In the course of a periodic review of portfolio as a strategic holding company, SBG decided to deconsolidate its holdings in Brightstar while retaining a significant minority stake to participate in future equity upside.

In the Transaction, SBG will sell all of its shares of BGG common stock held through its wholly owned subsidiary BGG Holdco, LLC to a newly formed subsidiary of BCP in exchange for (i) cash proceeds and (ii) a 25%^* stake in the said subsidiary of BCP which will hold all the shares of BGG. SBG will receive the cash proceeds, net of indebtedness owed by BGG to SBG, which will be repaid to SBG, as of the closing date.

The sale price is not disclosed due to confidentiality but has been determined through discussions with third parties and submitted appraisal values, and the sale has been decided through bidding by multiple participants.

“Since I founded Brightstar over 20 years ago, the company has grown tremendously and become a leader of end-to-end device lifecycle solutions,” said Marcelo Claure, Founder of Brightstar and Board Director, Executive Vice President & COO of SBG. “I am incredibly proud of what Brightstar has accomplished over the years and excited for its future. SBG looks forward to partnering with BCP as Brightstar enters into its next phase of growth.”

Upon completion of the Transaction, BGG and Brightstar will cease to be a subsidiary of SBG and will no longer be consolidated into SBG’s financial results. Prior to that, as it is currently considered highly probable that the Transaction will be completed, BGG and Brightstar’s net income (loss) in SBG’s consolidated statements of income for the six-month period ending September 30, 2020 are expected to be presented as “net income (loss) from discontinued operations” separately from continuing operations. Accordingly, BGG and Brightstar’s net income (loss) for the same period of the previous fiscal year will also be adjusted retrospectively and will be presented as “net income (loss) from discontinued operations.”

In addition, BGG and Brightstar’s assets and liabilities are expected to be presented as assets and liabilities classified as held for sale in SBG’s consolidated statement of financial position for the six-month period ending September 30, 2020. The other impacts on SBG’s consolidated financial results will be minor.

SBG does not provide forecasts of consolidated results of operations as they are difficult to project due to numerous uncertainties affecting earnings.