Singapore’s sovereign funds buy $1bn in Alibaba stock in SoftBank sale

Singapore’s sovereign wealth funds bought stake worth $1bn in Chinese e-commerce company Alibaba Group Holding Ltd’s as part of an $8.9bn sale by Japan’s SoftBank Group Corp, Alibaba’s biggest shareholder.

Singapore’s GIC Private Ltd. and Temasek Holdings each purchased $500m of Alibaba shares at $74.00 a share through their subsidiaries. Alibaba purchased $2bn of its own stock at the same price.

Members of the Alibaba Partnership of senior executives and founders purchased another $400m at the $74 per share price.

Softbank also offered $5.5bn in debt securities which could be exchanged for equity in 3 years.

Further, Softbank plans to offload at least $7.9bn of stake in Alibaba to reduce it’s debt.

Source: Reuters

Sumitomo likely to acquire 44% stake in Excel Crop Care

Japan-based conglomerate Sumitomo is looking to acquire a 44% stake in India-based agrochemical firm Excel Crop Care for a consideration price between INR 12 – 13bn.

Sumitomo plans on buying out a 24.7% equity stake held by owners, the Shroff family, and a 19% stake held by two other shareholders Ratnabali Investments.

Meanwhile, Australia-based shareholder Nufarm, a seeds manufacturer, which holds c.14% stake in Excel, would retain its stake in the company.

Excel is engaged in the export of agrochemicals to the U.S and Europe.

Source: Economic Times

 

Sharp to be acquired by Foxconn Tech. for ¥700b, stock jumps 5.8%

Electronics manufacturing Sharp Corp agreed to get acquired by Taiwan’s Foxconn Technology Group for ¥700b ($6.2b), preferring its offer over a state-backed fund Innovation Network Corp of Japan.

Ailing Sharp, which was saddled with debt and losses, had two competing offers. Incidentally, INCJ’s plan was to acquire Sharp to retain its national identity and sell off certain businesses, much to the detriment of Sharp. On the other hand, Foxconn’s offer allows the company to operate without any divestments.

Foxconn’s Chairman Terry Gou rationale for acquiring Sharp was to broaden its ambit of products and to transform it into a company which also makes electronics components and devices.

Shares of Sharp jumped 5.8% on the Nikkei on the news.

Source: Bloomberg