SoftBank Dumps $2B Worth Of Uber Shares After Stock's Rally

SoftBank Group Corp’s SFTBY Vision Fund has disposed of $2 billion worth of Uber Technologies Inc UBER common stock shares last week, as reported earlier by Bloomberg.

What Happened: The technology sector investment firm sold off 38 million shares in the ride-hailing company at $53.46 each on Jan. 7. The sale was carried out through an affiliate company, SB Cayman 2 Ltd, as per a filing with the U.S. Securities and Exchange Commission on Monday. 

After adjusting for the sale transaction, SoftBank will continue to hold 184.2 million shares valued at approximately $10 billion based on the current stock price.

Uber stock tumbled in March last year due to a drop in demand during the COVID-19 outbreak. Although the ride-sharing company suffered at the time, some of the effects were offset by a growth in the food delivery business. Uber also followed through with two rounds of layoffs in May last year when the infection levels were on the rise.

Why Does It Matter: From $14.82 on Mar. 18, Uber has gained 268% to-date. In addition to Uber, Masayoshi Son-led SoftBank has a diversified portfolio in the ride-hailing sector with investments in the Chinese vehicle for hire startup Didi Chuxing Technology Co, the Indian ride-sharing startup Ola Cabs, and Singapore based ride-hailing service Grab Holdings Inc.

After the partial sale of Uber stock, the largest investment in SoftBank’s portfolio is the Chinese ride-sharing startup Didi Chuxing, reports Bloomberg.

Price Action: SFTBY closed Monday at $38.17, 1.85% lower whereas UBER closed 2.46% higher at $54.59.

Related News: Uber's Shares Sag On Report Of Large Sale