SoftBank Group to sell 5% telco unit stake to raise $2.9 billion

SoftBank Group Corp. (SFTBY) announced on Thursday morning that it plans to sell 5% of its stake in SoftBank Corp., a separately listed Japanese wireless mobile company. The move would raise 310.2 billion Yen ($2.9 billion) through securities companies as a part of the $41 billion asset sale program.

After the announcement, SoftBank Corp.’s share price jumped to 1,375 Yen on Thursday’s close.

The company stated on Wednesday that it would sell 240 Million shares in the subsidiary, while SoftBank will still own 62.1% of the mobile unit after the sale.

SoftBank’s plan to strengthen its balance sheet has become more evident this week. The company disclosed its earnings on Monday and said that it had raised $11.5 billion by forwarding a small portion of its stake in Alibaba Group Holding Ltd. (BABA).