SOFTBANK announces a partial sale of its holding in UTStarcom, Inc.Mar. 10, 2003
SOFTBANK CORP. announces that its wholly owned subsidiary,SOFTBANK America Inc. (Headquarter: Delaware, U.S.A., Representative: Masayoshi Son, hereinafter called “SBA”) agreed to sell a part of its holding in UTStarcom, Inc. (Nasdaq:UTSI, Headquarter: California, U.S.A., hereinafter called “UTSI”) pursuant to UTSI’s request to repurchase its shares.
SBA will sell 8,000,000 shares of UTSI, for an aggregate purchase price of approximately US$139,000,000 (translated amount in yen: approximately 16.2 billion yen, exchange rate: $1=117 yen). Gain on sale of such shares is expected to be approximately 9 billion yen. The sales agreement is expected to come into effect in April and the proceeds from the sale should be also delivered that month. Gain on sale regarding the above-mentioned transaction is expected to be recognized in the next fiscal year (the year ending March 2004).
Proceeds from the above-mentioned sale will be allocated for the broadband business, which SOFTBANK as a group is rapidly developing, and other businesses.
Although SBA’s stake in UTSI is expected to decrease from approximately 21% to approximately 15% after the transaction, SBA will remain the largest shareholder of UTSI.
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