Brightstar to Leave Softbank’s Investment Portfolio
Softbank proceeds with its string of disposals after putting another firm in its grand sell-off to build its cash pile.
Today, the Japanese firm sells Brightstar Corp, an American wireless company. The firm is long considered as a money-losing investment.
The cellphone distributor will sell to Brightstar Capital Partners, a newly formed subsidiary of private equity, for undisclosed cash and a 25% stake in the newly established firm.
Although bearing the same name, Brightstar Capital is not affiliated with Brightstar Corporation. The wireless service provider is founded by Marcelo Claure, former chief executive officer of Softbank, the company’s worth now grew to $2.1 billion.
Softbank’s founder has been known for its reputation for buying investments, not selling. However, in recent months, he has sold more assets than anticipated to balance the group’s balance sheets and fund buybacks.
This is the Japanese firm’s latest distance away from the telecommunications business. In late August, the investment company announced that it would slash its stake in its wireless carrier Softbank Corp from 62% to 40%.
The conglomerate’s shares fell 1.9% after the announcement.
Massive Sell-off to Expect?
Earlier in the week, one of the valuable Softbank ventures, Arm Limited, was sold to Nvidia for $40 billion in cash and shares.
The semiconductor firm is one of the key players in Apple Inc.’s A-series chips used in iPhone, iPad, and potential on Mac’s coming launches.
In 2018, the Japanese investment giant started to explore the possibility of Brightstar Corp sell-off as it continued to be considered as a lower-growth business. According to sources familiar with the matter, the technology firm is valued by $1 billion.
The sale, targeted to close by March 30, 2021, will be subject to regulatory approvals and customary conditions.
Meanwhile, the Nikkei Average where Softbank continues to put much weight, rose by 0.18%, finishing at 23,360.30. The Topix index also closed higher by 0.49%.
