Press Releases 2007

Accrual of non-operating expense due to exercise of subscription rights

Sep. 27, 2007

SOFTBANK CORP. (hereinafter ‘SOFTBANK’) announces that the subscription rights that it had issued on 16 December 2004 (for details refer to the 30 November 2004 press release ‘Notice of the Repurchase of the Outstanding Stock Acquisition Rights and the Issuance of Stock Acquisition Rights by Third Party Allotment’) were excised today as stated below and that it will subsequently record non-operating expense associated with such exercise.

1. Accrual of non-operating expense

In order to enhance the equity capital, SOFTBANK paid approximate 1.9 billion yen to the party who exercised its subscription rights, for abandoning profits potentially occurring during the exercise period.

2. Impact on financial results

SOFTBANK expects to record non-operating expense of approximate 1.9 billion yen in the second quarter for the fiscal year ending March 2008 (non-consolidated/consolidated) associated with such exercise.

3.Outline of the exercise of subscription rights

(1)Party exercising subscription rights Goldman Sacks International
(2)Number of units of subscription rights exercised 80,000 units
(Number of units originally issued; 80,000)
(3)Number of shares to be issued 24,000,000
(2.3% of the total number of outstanding shares)
(4)Exercise period of subscription rights 20 December 2004 to 14 December 2007
(5)Date of exercise 27 September 2007
(6)Amount payable upon exercise of the subscription rights 551,100 yen per unit (1,837 yen per share)
(7)Total amount payable upon exercise of the subscription rights 44,088 million yen
(8)Amount of equity to be capitalized upon exercise of the subscription rights 23,640 million yen

Reference

Equity ratio before and after the exercise of the subscription rights

  Before After*
Consolidated 7.1% 8.2%
Non-consolidated 27.1% 29.5%
[Note]
  • *The sum of the equity capital as of 30 June 2007, the paid-in amount of subscription rights (3,150 million yen) and the total amount payable upon exercise of the subscription rights is divided by the total assets as of the same day.
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