SoftBank Seeks $2.8 Billion From Japan Banks
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SoftBank Group is in talks to get as much as 300 billion yen ($2.76 billion) in financing from three banks.
Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group and Mizuho Financial Group are currently in discussions with the investment company about its loans, various media reported.
We are evaluating our options flexibly while considering cash on hand, said SoftBank spokeswoman Hiroe Kotera, who was quoted in «Bloomberg». Bank loans are one option, but nothing has been decided, she added.
The loans are part of the company’s regular financing, said the newswire’s source, but Nikkei reported that SoftBank is raising money to pay for its $3 billion tender offer to WeWork shareholders.
Last month, the investment firm agreed on a $9.5 billion rescue package for WeWork, in a deal that handed it 80 percent of the troubled co-working company. Masayoshi Son’s company reported an operating loss of close to $6.5 billion in the quarter, after writing down the value on a string of high-profile investments.
Questions & Answers
Q.Which banks are currently in discussions with SoftBank for financing?
Which banks are currently in discussions with SoftBank for financing?
Mitsubishi UFJ Financial Group, Sumitomo Mitsui Financial Group, and Mizuho Financial Group are currently discussing potential loans with SoftBank. These banks are among those being approached by the investment company.
Q.What is SoftBank's stated reason for seeking these loans?
What is SoftBank's stated reason for seeking these loans?
A SoftBank spokeswoman stated that bank loans are one option as the company evaluates its financing options flexibly, considering cash on hand. The loans are part of the company’s regular financing activities.
Q.What alternative reason has been reported for SoftBank seeking these funds?
What alternative reason has been reported for SoftBank seeking these funds?
Nikkei reported that SoftBank is raising money to fund its $3 billion tender offer to WeWork shareholders. This is a separate explanation from the company's spokeswoman regarding the purpose of the financing.
Q.What was SoftBank's recent financial performance, as mentioned in the article?
What was SoftBank's recent financial performance, as mentioned in the article?
SoftBank reported an operating loss of nearly $6.5 billion in the last quarter. This loss occurred after the company wrote down the value of several high-profile investments.
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