Business

SoftBank Group sells Uber shares worth US$2 bil

Japanese conglomerate's decision to buy heavily into ride-hailing giant appears to have backfired

Updated 5 years ago · Published on 12 Jan 2021 2:00PM

SoftBank Group sells Uber shares worth US$2 bil
SoftBank has invested heavily in ride-hailing platforms worldwide in recent years, from California-based Uber to Didi Chuxing in China, Singapore's Grab and India's Ola. – Pixabay pic, January 12, 2021

TOKYO – Japan's SoftBank Group has sold US$2 billion (RMRM8 billion) worth of shares in Uber, according to a document released yesterday, as it took advantage of a surge in the US ride-hailing giant's value.

An affiliate of SoftBank's Vision Fund sold 38 million shares for US$53.46 apiece, according to a US stock filing on Uber's website, though it still remains the firm's main shareholder, with a 10% stake worth about US$10 billion.

The Japanese conglomerate

SoftBank has invested heavily in ride-hailing platforms worldwide in recent years, from California-based Uber to Didi Chuxing in China, Singapore's Grab and India's Ola.

It's decision to buy heavily into Uber appeared to have backfired when its price plunged following a disappointing 2019 initial public offering, before being slammed by the impact of coronavirus lockdowns devastated demand for hired transport.

By the end of March, Uber's share price had fallen below US$15, from US$42 on its first day of trading in May 2019.

But the outlook has brightened considerably for such platforms as demand for food delivery booms with people still stuck at home, and the US firm's share price has soared.

SoftBank Group's shares rose 0.8% to 8,050 yen in Tokyo morning trade. – AFP, January 12, 2021

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