SoftBank is selling about one-third of its stake in ride-hailing company Uber; in part to cover losses on its investment in Chinese ride-hailing company Didi, two people familiar with the matter said.
It’s planning to sell 45 million shares, which will have a 30-day lockup.
Uber shares fell 5% in extended trading following the report.
The value of Uber’s own Didi stake declined $2 billion last week following the June debut of Didi’s American depositary shares on the New York Stock Exchange; as China reportedly planned fines and other punishments against the company amidst a broader crackdown on U.S. listed Chinese companies.
SoftBank has lost about $4 billion on its Didi position in total, CNBC’s Deirdre Bosa reported.
It’s also suffered from a decline in valuation of Alibaba; the botched Ant Group IPO, and paused plans for a ByteDance listing.
In addition, Softbank’s Masayoshi Son has increasingly been playing in public markets with its SB Northstar unit.
The news comes one week after Uber stock rose slightly after; the company’s trucking unit announced plans to acquire shipping software company Transplace from TPG Capital for around $2.25 billion.
Didi shares have fallen 37% from their $14.14 closing price on the stock’s first day of trading, June 30.
Over the same period Uber shares are down about 8%.
SoftBank’s own shares have also tumbled since the Didi U.S. initial public offering. The SoftBank Vision Fund owned 21.5% of Didi following its U.S. listing.
SoftBank invested in Uber in 2018. In 2019 SoftBank Vision Fund invested another $333 million in Uber.
As recently as March 31 Uber referred to SoftBank as “a large stockholder.”
Many people called SoftBank’s Uber equity purchase a failed investment; SoftBank CEO Masayoshi Son told analysts on a conference call in February, saying it was paying expensive money to a bad company.
“However,” he said, “as a matter of fact, as you can see that we have already made something close to ¥500 billion gain from Uber.”
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