SoftBank Group needs to cut and run on its entire WeWork investment, not just the shares. Covid-19 and the economics of a prolonged crisis necessitate strict pragmatism.
After a $1.5bn lifeline late last year, the next step in SoftBank’s bailout of the office rental company — predicated on completing the share purchase — was to be a further $5bn in debt financing. With WeWork bonds trading at about 36c on the dollar and the global economy in upheaval over the coronavirus pandemic, there’s no price in the world that could have made SoftBank’s double-down on the shares look smart. Pouring $5bn into WeWork debt would be a poor use of its funds.Last week, Moody’s Investors Service cut its debt by two notches, citing SoftBank’s planned offload of assets that amounts to little more than a fire sale.
Despite a broad portfolio that includes its stake in the Vision Fund, its domestic telecoms operator, a US telco, and a semi-conductor company, the only asset SoftBank has of significant value is its 25% stake in Alibaba Group. Those shares aren’t very liquid and could take months to sell. Son doesn’t have time. Many Alibaba investors believe that the e-commerce company has got through the worst of the Covid-19 crisis and will benefit from a return to normalcy in China.
Россия Последние новости, Россия Последние новости
Similar News:Вы также можете прочитать подобные новости, которые мы собрали из других источников новостей
CHRIS GILMOUR: Market at odds with African Rainbow’s valuation of unlisted investmentsAfrican Rainbow Capital Investments’ discount to NAV remains stubbornly wide I knew this was about to start, simply because of the R1billion donation. It's simply because people are aware that the other billions aren't really donations The true gem of Rainbow's treasure should be Rain. All the other stuff come second to it. With that said, valuation of an asset based on how much money it might make in the future will always be tricky.
Источник: BDliveSA - 🏆 12. / 63 Прочитайте больше »
TeleMasters shares fall despite bet on a new business modelThe company is moving away from the traditional variable billing service to subscription-based services
Источник: BDliveSA - 🏆 12. / 63 Прочитайте больше »