SoftBank Expects Windfall Gain of $34B From Alibaba Stake Sale: Report

SoftBank Group Corp SFTBY looks to post a 4.6 trillion yen ($34.1 billion) gain from settling forward contracts for Alibaba Group Holding Limited BABA stock, Bloomberg reports.
It is a far more considerable windfall than previously reported.
SoftBank's board approved the early physical settlement of prepaid forward contracts corresponding to 242 million American Depositary Receipts.
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SoftBank's stake in Alibaba would fall to 14.6% from 23.7% as of the end of June after the settlement.
Recently, SoftBank sold about a third of its stake in Alibaba through prepaid forward contracts this year, raising $22 billion in cash.
SoftBank has sold more than 50% of its stake in Alibaba through these contracts, which could reduce its holding in the e-commerce giant below the threshold required to hold a board seat.
The dwindling fortunes of the Chinese tech shares have prompted concerns over the stake selloff.
SoftBank analysts flagged concerns about SoftBank going private following record quarterly losses fueled by the tech sector meltdown.
Price Action: BABA shares traded lower by 1.83% at $89.52 in the premarket on the last check Wednesday.
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