SoftBank Group is reportedly considering spinning off its Japanese wireless business as part of an effort to raise additional capital.
Reuters, citing a report in The Nikkei, indicated that the Tokyo-based tech giant could seek approval from the Tokyo Stock Exchange as soon as this spring and could list SoftBank Corp. in the fall.
SoftBank Corp. is Japan’s third-largest wireless carrier and its parent company’s most profitable business, but the mobile operator faces an aging domestic population and competition from rival and lower-cost carriers.
An IPO, meanwhile, could fetch some $18 billion — without adding debt or diluting equity elsewhere — that could be invested in higher-growth ventures such as overseas tech companies. Listing the business could also alleviate some of SoftBank Group’s $100 billion debt load, analysts said.
SoftBank officials responded that although an IPO is an option, no decision has been made.
The sprawling company is also the controlling stakeholder of U.S. carrier Sprint, which chief executive Masayoshi Son views as crucial to supporting next-generations systems despite its highly publicized struggles.
Filed Under: Carriers
