Japanese conglomerate SoftBank has sold over US$2 billion shares in US ride-hailing giant Uber Technologies via a wholly owned affiliate, according to a filing with the US Securities and Exchange Commission.
Photo credit: Elliot Brown (CC2.0)
On January 7, SoftBank affiliate firm SB Cayman 2 sold 38 million Uber shares at an average price of US$53.46. Following the transaction, the Japanese investment firm retains 184.2 million shares, which is worth about US$10 billion at current prices.
SoftBank posted a US$17.7 billion loss on valuation from investments held by its Vision Fund in full-year 2019. The fair value of its big bets in Uber plummeted during the fourth quarter of 2019 because of the Covid-19 pandemic. Last year, Uber laid off thousands of employees and closed around 45 offices globally to cut costs amid the pandemic.
Apart from Uber, SoftBank has also invested in other ride-hailers such as China’s Didi Chuixng, India’s Ola, and Singapore’s Grab.
Covid-19 lockdowns have dealt a blow to the global ride-hailing market, which is expected to drop from US$60.5 billion in 2019 to US$52.07 billion in 2020.
However, Uber’s shares rebounded by 150% from March last year. Didi Chuxing, which SoftBank owns about 20% share, is reportedly considering an initial public offering in the US.
SoftBank is also reportedly preparing to take at least five more of its portfolio companies public this year, which could drive up the investment firm’s portfolio valuation.
Edited by Collin Furtado and Eileen C. Ang
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
