Jiji Press TOKYO (Jiji Press) — Internet portal Yahoo Japan Corp., an affiliate of technology giant Softbank Group Corp., said Tuesday that it will buy back up to about ¥220 billion of own shares.
The move comes in response to a plan by U.S. investment company Altaba Inc. to sell Yahoo Japan shares it holds. Altaba is the second-largest shareholder of Yahoo Japan, with an equity stake of about 35 percent.
Under a scheme announced on the day, Softbank Corp., the mobile phone unit of Softbank Group, will buy part of the Altaba-held Yahoo Japan shares through a tender offer at ¥360 apiece, the same as Yahoo Japan stock’s closing price on the Tokyo Stock Exchange’s First Section for Monday.
Through the tender offer, Softbank Corp. will snap up an equity stake of about 9 percent in Yahoo Japan.
Then, Yahoo Japan will purchase up to 611.11 million own shares, roughly the same as the number to be bought by Softbank Corp. from Altaba, from a different subsidiary of Softbank Group also at ¥360 per share. Softbank Group is the top shareholder of Yahoo Japan.
After the completion of the tender offer, Altaba’s Yahoo Japan stake is expected to drop to about 26 percent.
Softbank Group hopes to increase its presence in online shopping and other operations by strengthening the collaboration between Softbank Corp. and Yahoo Japan.