Japanese telecommunications company SoftBank Group Corp. announced Monday it is planning to split into two new subsidiaries to better focus on its domestic and international operations.
According to the company, the “strategic” move will shift SoftBank’s stakes in U.S. wireless carrier Sprint and Chinese Internet company Alibaba Group Holding to a new global operations management subsidiary. SoftBanks’ Japanese assets, including Yahoo Japan Corporation, will funnel into a separate domestic operations management company.
In announcing the changes, SoftBank said the split will “position its two core businesses (domestic operations and global operations) as future growth drivers.”
The domestic operations subsidiary will be headed by current SoftBank Group director Ken Miyauchi, while the global operations subsidiary will be led by current SoftBank president and COO Nikesh Arora, the company said.
Both subsidiaries will be 100-percent owned by SoftBank.
The split is expected to be complete by the end of this year, SoftBank said, pending shareholder approval.
The announcement comes on the heels of a report in which Bloomberg revealed SoftBank’s plan to create a subsidiary company to loan money to Sprint. The proposed company, in a rare move, would accept Sprint’s wireless equipment and spectrum rights as collateral for the loan money, Bloomberg reported.
Bloomberg reported Sprint is hoping to secure $3 billion to $5 billion in loans this year from the proposed SoftBank subsidiary.
As of 11:45 a.m. Monday, Sprint shares were up just over 6 percent on the SoftBank split news.