DOCSLIB.ORG

Softbank (9984)

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Softbank (9984) 30 October 2014 Asia Pacific/Japan Equity Research Integrated Telecommunication Services (Telecommunication Services (Japan)) / MARKET WEIGHT Softbank (9984 / 9984 JP) Rating OUTPERFORM* Price (29 Oct 14, ¥) 7,509 REINSTATEMENT Target price (¥) 10,000¹ Chg to TP (%) 33.2 Market cap. (¥ bn) 9,015.76 (US$ 83.39) Valuing large unrealized gains, FCF of over ¥1tn Enterprise value (¥ bn) 16,299.76 Number of shares (mn) 1,200.66 ■ Reinstate coverage: In conjunction with Credit Suisse's initiation of Alibaba Free float (%) 65.0 Group Holding coverage (The Giant Marches On), we resume coverage of 52-week price range 9,220 - 6,766 *Stock ratings are relative to the coverage universe in each Softbank with a ¥10,000 target price (potential return 33%) and analyst's or each team's respective sector. OUTPERFORM rating. The stock is currently trading at around ¥7,500, but ¹Target price is for 12 months. we think the market is undervaluing the company’s investment securities and Research Analysts existing business and has not priced in annual FCF in excess of ¥1tn or the Hitoshi Hayakawa future value of the company’s debt-funded global business strategy. 81 3 4550 9952 [email protected] ■ Unrealized gains on Alibaba shares, abundant FCF could support new M&A: Softbank generates annual FCF of more than ¥1tn from existing businesses, and the value of its shares in Alibaba mean it now has even greater scope to borrow. We see potential for another M&A deal of some several trillion yen if the right target emerges. However, a major deal could be a negative for the stock in the near term. Experience suggests active buying is the right approach when the stock falls after M&A deals. ■ Catalysts/risks: Factors likely to impact the share price include a rise (fall) in the value of investment securities holdings, news of a major M&A deal, and an improving (deteriorating) competitive environment in the domestic mobile business or the US mobile business. ■ Valuation: We base our ¥10,000 TP on a Sum-of-the-Parts (SoTP) valuation. In addition to the value of investment securities, we apply EV/EBITDA multiples of 6x for the domestic mobile business and 4x for the fixed-line business (using our FY3/16 estimates). Share price performance Financial and valuation metrics Year 3/14A 3/15E 3/16E 3/17E Price (LHS) Rebased Rel (RHS) Sales (¥ bn) 6,666.7 8,090.0 8,191.4 8,375.8 10000 400 8000 300 Operating profit (¥ bn) 1,077.0 1,258.4 1,360.5 1,454.4 6000 200 Recurring profit (¥ bn) 924.0 1,455.7 1,288.1 1,465.6 4000 100 2000 0 Net income (¥ bn) 578.3 917.4 823.1 936.4 EPS (¥) 204.8 756.4 678.7 772.1 Change from previous EPS (%) n.a. 117.0 51.0 IBES Consensus EPS (¥) n.a. 504.5 523.1 636.8 The price relative chart measures performance against the EPS growth (%) -37.6 269.3 -10.3 13.8 TOPIX which closed at 1270.64 on 29/10/14 P/E (x) 38.1 9.9 11.1 9.7 On 29/10/14 the spot exchange rate was ¥108.12/US$1 Dividend yield (%) 0.51 0.53 0.53 0.53 EV/EBITDA(x) 9.2 6.8 6.2 5.8 Performance Over 1M 3M 12M P/B (x) 12.2 3.3 2.6 2.0 Absolute (%) -3.8 -0.8 1.9 ROE(%) 36.1 40.4 26.2 23.3 Relative (%) 1.2 0.6 -4.6 Net debt/equity (%) 397.7 266.9 193.1 142.4 Source: Company data, Thomson Reuters, IFIS, Credit Suisse estimates. DISCLOSURE APPENDIX AT THE BACK OF THIS REPORT CONTAINS IMPORTANT DISCLOSURES, ANALYST CERTIFICATIONS, AND THE STATUS OF NON-US ANALYSTS. US Disclosure: Credit Suisse does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. CREDIT SUISSE SECURITIES RESEARCH & ANALYTICS BEYOND INFORMATION® Client-Driven Solutions, Insights, and Access 30 October 2014 Valuation Reinstate coverage with ¥10,000 TP Softbank has been on our Restricted list for some time. Following Alibaba’s IPO and other developments, we reinstate coverage of Softbank with a ¥10,000 TP (potential return 33%) and OUTPERFORM rating. We continue to view a SoTP approach as the best way to value Softbank. We think the key to valuing Softbank is in its holdings of investment securities, which have increased to several trillion yen regardless of which valuation method we use due to Alibaba’s IPO having provided the company a market value. Enterprise value approach Our ¥10,000 TP translates into enterprise value (EV) of ¥16tn. This breaks down into three main parts: the values of investment securities holdings, the mobile communications business, and the fixed-line telecommunications business. Investment securities are further divided into three key holdings: investment securities listed on domestic markets, shares in Alibaba Group Holding, and shares in Sprint. Figure 1: Softbank enterprise value (¥mn) Figure 2: Softbank enterprise value (%) Fixed Line and Fixed Line and other business other business 624,000 Alibaba 6,553,738 4% Alibaba 75.4% Sprint 15.4% Sprint 1,336,425 Yahoo Japan 7.3% Yahoo Japan 632,692 Others 2.0% Others 174,580 Investment Mobile Mobile securities Investment Business Business securities 7,320,196 values 8,697,436 44% values 52% Note: Share prices as of 28 October 2014 Note: Share prices as of 28 October 2014 Source: Company data, Credit Suisse estimates Source: Company data, Credit Suisse estimates To calculate the value of Softbank’s holdings of listed securities, we multiply the market Discount of 35.64% used for value of each company by Softbank’s stake in that company to work out the total market non-Alibaba businesses value of all its holdings. We then apply a discount, which in the case of non-Alibaba businesses is the Japanese corporate tax rate of 35.64%. We use a discount of 24.4% only for Alibaba Group Holding. This is because a domestic Discount of 24.4% used for subsidiary holds 60.4% of Softbank’s stake in the group, while a subsidiary in Singapore Alibaba to reflect stake held holds the remaining 39.6%; we therefore apply the domestic corporate tax rate of 35.64% in Singapore to the stake held in Japan and Singapore’s corporate tax rate of 17% to that held by the subsidiary in Singapore. The above approach yields a total value for Softbank’s investment securities holdings of ¥8.69tn. We estimate the value of Softbank’s investment securities holdings, before applying the Value of securities holdings above discounts, at ¥12tn, which is ¥3.1tn higher than Softbank’s total market cap as of 28 without application of October (¥8.9tn). Even taking into account net interest-bearing debt of ¥4.6tn, the recent discount share price would therefore suggest that Softbank can acquire the domestic mobile communications business of roughly ¥1.4tn with the remaining annual EBITDA of ¥1.5tn, equating to a low EV/EBITDA multiple of around 1x. Our TP without applying the discount would be around ¥12,000, or roughly ¥2,000 higher than our actual ¥10,000 TP with application of the discount. Softbank (9984 / 9984 JP) 2 30 October 2014 Application of a discount therefore has a significant impact on our valuation of Softbank. What is a fair discount? There is no consensus on how to value investment securities. One investor may see applying a discount as unnecessary, while another might agree with us and view the application of the effective corporate tax rate as the minimum required adjustment. Either way, Softbank’s share price is finding its natural level against this backdrop of differing views. In other words, there may be little value in arguing the need for a discount, or indeed, what type of discount should be applied. Based on Softbank's share price since Alibaba Group Holding listed, the market does seem to be applying some sort of discount to the value of Softbank’s investment securities. We apply a 6x multiple to our FY3/16 EBITDA estimate for the mobile business, resulting Valuing the domestic mobile in an EV of ¥7.32tn. Our multiple is the simple average of the FY15E EV/EBITDA multiples business for the world’s leading integrated telecommunications companies and the world’s leading mobile communications companies (6.0x and 6.4x, respectively). We estimate EV for Softbank’s fixed-line business is ¥624bn, based on an EV/EBITDA multiple of 4x. We therefore value the domestic business at ¥7.944tn, comprising ¥7.32tn for the mobile business and ¥624bn for the fixed-line business. Figure 3: EV/EBITDA multiples for the world’s leading communications companies Telefonica 7.5 Verizon 6.5 Mobile telecom 6.4 Global telecom 6.2 Integrated telecom 6.0 America Movil 5.8 AT&T 5.8 Vodafone 5.7 Note: Share prices as of 28 October 2014 "Mobile telecom" is the average of 14 companies including Vodafone, and" Integrated telecom" is the average of 16 companies including AT&T and Verizon. "Global telecom" is a simple average of "Mobile telecom" and "Integrated telecom. Please see Figure 4 for the list of companies. Source: Company data, Credit Suisse estimates Softbank (9984 / 9984 JP) 3 30 October 2014 Figure 4: Global telecom sector valuation Data as of MktCap MktCap Closing Target EV/EBITDA (x) 10/28/14 US$m Rating* Curr.
Load more

Recommended publications
  • US-CHINA TRADE WAR Uneasy Truce
    Xi Jinping and China’s new era Japan Emperor’s enthronement WeWork’s debacle MCI(P) 087/05/2019 November 2019 INDEPENDENT • INSIDER • INSIGHTS ON ASIA Best New Print Product and Best News Brand in Asia-Pacic, International News Media Association (INMA) Global Media Awards 2019 US-CHINA TRADE WAR Uneasy truce A partial trade deal is on the anvil for the world’s two leading superpowers. Will it be the breakthrough for global trade? Or, will hostilities prevail? WE BRING YOU SINGAPORE AND THE WORLD UP TO DATE IN THE KNOW News | Live blog | Mobile pushes Web specials | Newsletters | Microsites WhatsApp | SMS Special Features IN THE LOOP ON THE WATCH Facebook | Twitter | Instagram Videos | FB live | Live streams To subscribe to the free newsletters, go to str.sg/newsletters All newsletters connect you to stories on our straitstimes.com website. Data Digest Airlines’ emissions rising faster than predicted FLYING FREQUENTLY IS DAMAGING THE trajectory, aviation emissions could roughly environment at a rate far higher than estimated, triple by 2050, by which time aviation emissions says a new report by the United Nations’ might account for 25 per cent of the global carbon International Civil Aviation Organisation (ICAO). budget, it adds. Greenhouse gas emissions from commercial Flights within the Asia-Pacific region emitted aviation totalled 918 million tonnes last year, the largest share of passenger transport-related accounting for 2.4 per cent of global CO2 CO2 at 25 per cent of the global total. The leading emissions from fossil fuel use and a 32 per cent countries in this list are China, Japan, India and increase over the past five years.
    [Show full text]
  • Softbank Corp. Annual Report 2019 Softbank Corp
    SoftBank Corp. Annual Report 2019 SoftBank Corp. We don’t just dream. We make things happen. We’re going beyond just being a carrier — we’re transforming into a visionary platformer. We don’t just dream up things. We take the world’s advanced ideas, and turn them into reality with our drive to make things happen. We do this so tomorrow’s people will be the happiest in human history. SoftBank Corp. ANNUAL REPORT 2019 1 Introducing Our First Annual Report SoftBank Group Corporate Philosophy Ken Miyauchi President & CEO Information Revolution SoftBank Corp. — Happiness for Everyone In December 2018, SoftBank Corp. (the “Company” or “SoftBank”) of this technological evolution, SoftBank has expanded its business listed its shares on the First Section of the Tokyo Stock Exchange. scale in step with society’s growth. The second is our ability to grow I would like to begin by expressing my sincere gratitude to our businesses. We have expanded our business operations by bringing shareholders, investors, and other stakeholders for their support together and regenerating companies in crisis, including JAPAN to date. TELECOM CO., LTD., Vodafone K.K., WILLCOM, Inc., and eAccess Ltd. The third is our ability to overcome adverse environments. In its role as a strategic holding company, our parent company Sometimes, we have faced headwinds, but we have always taken SoftBank Group Corp. (“SoftBank Group”). is accelerating the pace on adverse situations directly, focused on self-improvement, and of global investment in accordance with the Cluster of No. 1 AI thereby achieved further growth. Strategy. Meanwhile, as the primary operating company in Japan With a view to communicating our growth strategy and related and with the telecommunications business at its core, SoftBank is initiatives more clearly, we have issued our first annual report, Since our founding, the SoftBank Group has sought to use the engaging in a wide range of businesses.
    [Show full text]
  • Press Release Contains Forward-Looking Statements Based on the Current Expectations of Searchlight Capital Partners, LP, Forgelight LLC and Grupo Televisa, S.A.B
    New Independent Directors Named to Univision Board World-Class U.S. Hispanic Business Leaders to Join Univision’s Newly Constituted Board as Independent Directors MIAMI, NEW YORK & MEXICO CITY – November 11, 2020 – Searchlight Capital Partners, LP (“Searchlight”), a global private investment firm and ForgeLight LLC (“ForgeLight”), an operating and investment company focused on the media and consumer technology sectors, and Grupo Televisa SAB (“Televisa”), a leading media company in the Spanish-speaking world, today announced the appointment of independent members to a reconstituted Board of Directors for Univision Holdings, Inc. (“Univision”), the leading U.S. Hispanic media company. The new Board will take effect upon the close of the previously announced acquisition of a majority ownership interest in Univision, expected to take place by the end of this year. The independent directors consist of four leading U.S. Hispanic business leaders who collectively possess a deep understanding of Univision’s U.S. Spanish-speaking audiences and the communities the company serves, backed by substantial financial and operational expertise across a variety of sectors. This new Board, after closing, will help oversee Univision’s strategy as it builds on recent content and programming momentum, expands its portfolio of advertising products, substantially enhances its digital presence, and features best-in-class content through its continued partnership with Televisa. The new directors include: • Marcelo Claure, Chief Executive Officer of Softbank Group International and Chief Operating Officer of SoftBank Group Corp; • Oscar Munoz, Executive Chairman of United Airlines Holdings, Inc.; • María Cristina “MC” González Noguera, Senior Vice President of Global Public Affairs for The Estée Lauder Companies; and • Gisel Ruiz, a 26-year veteran of Walmart Inc., having served most recently as Chief Operating Officer of Sam’s Club.
    [Show full text]
  • Owner Operated Companies July 12, 2021
    OUR VIEWS ON ECONOMIC AND OTHER EVENTS AND THEIR EXPECTED IMPACT ON INVESTMENTS JULY 12, 2021 The views of the Portfolio Management Team contained in this report are as of July 12, 2021 and this report is not intended to provide legal, accounting, tax or specific investment advice. Views, portfolio holdings and allocations may have changed subsequent to this date. This research and information, including any opinion, is compiled from various sources believed to be reliable but it cannot be guaranteed to be current, accurate or complete. It is for information only, and is subject to change without notice. The contents of this Newsletter reflect the different assumptions, views and analytical methods of the analysts who prepared them. OWNER OPERATED COMPANIES the end of 2021. Clearco has hired two new executives to lead product and technology development in the last two months, including Katrina SoftBank Group Shackelford, a former director of product at Amazon.com Inc. Clearco Corp. (“SoftBank”) is part of a growing list of Canadian tech companies that have achieved - A SoftBank unicorn status this year. In the first quarter, Canadian companies raised Group Corp. fund is leading $2.5 billion in venture capital funding, according to KPMG. a US$215 million investment SoftBank - SoftBank Group Corp. plans to invest an additional US$5 in Clear Finance Technology billion in Latin American companies, according to people familiar with Corp a Canadian growth capital the matter. The board is close to approving the new capital allocation, start-up that provides money which would double its commitment to the region to $10 billion, one of to small online businesses.
    [Show full text]
  • Acquisition of Brightstar Corp. Shares
    October 19, 2013 SoftBank Corp. Acquisition of Brightstar Corp. Shares SoftBank Corp. (“SoftBank”) announced that it has entered into agreements yesterday (October 18, 2013, JST/EDT) with the major shareholders (the “Sellers”*1) of mobile device distributor Brightstar Corp. of the United States (“Brightstar”) pursuant to which SoftBank will acquire Brightstar shares (the “Transaction”). In the Transaction, SoftBank will invest a total of USD 1.26 billion (approx. JPY 124.7 billion*2) into certain U.S. subsidiaries. Such U.S. subsidiaries will purchase 100% of the shares of Brightstar for approximately USD 1.105 billion (approx. JPY 109.4 billion*2) cash consideration, and U.S. subsidiary shares as noted in 3. (5) below. As a result of the Transaction, SoftBank will indirectly own approximately 57% of the voting power, and common stock, of the shares of a U.S. subsidiary that will own 100% of Brightstar, making Brightstar a subsidiary of SoftBank. Furthermore, SoftBank plans to gradually exercise the Warrant (defined below) to increase its ownership in the U.S. subsidiary to approximately 70% of the voting power, and common stock, over the five year period following step (1) of “2. Transaction Method.” [Note] *1 Including Mr. Marcelo Claure and LG BRIGHTSTAR, L.P., as listed in “6. About the Shareholders whose Shares will be Acquired.” [Note] *2 Converted at USD = JPY 99. 1. Reason for Transaction Brightstar is the world’s largest specialized wireless distributor*3 and a leading provider of diversified services focused on enhancing the performance and results of the key participants in the wireless device value chain: manufacturers, operators and retailers.
    [Show full text]
  • Technology, Media and Telecommunications Review – Japan
    The Technology, Media and Telecommunications Review Sixth Edition Editor John P Janka Law Business Research The Technology, Media and Telecommunications Review The Technology, Media and Telecommunications Review Reproduced with permission from Law Business Research Ltd. This article was first published in The Technology, Media and Telecommunications Review - Edition 6 (published in November 2015 – editor John Janka) For further information please email [email protected] The Technology, Media and Telecommunications Review Sixth Edition Editor John P Janka Law Business Research Ltd PUBLISHER Gideon Roberton SENIOR BUSINESS DEVELOPMENT MANAGER Nick Barette SENIOR ACCOUNT MANAGERS Katherine Jablonowska, Thomas Lee, Felicity Bown, Joel Woods ACCOUNT MANAGER Jessica Parsons PUBLISHING MANAGER Lucy Brewer MARKETING ASSISTANT Rebecca Mogridge EDITORIAL ASSISTANT Sophie Arkell HEAD OF PRODUCTION Adam Myers PRODUCTION EDITOR Anne Borthwick SUBEDITOR Caroline Herbert MANAGING DIRECTOR Richard Davey Published in the United Kingdom by Law Business Research Ltd, London 87 Lancaster Road, London, W11 1QQ, UK © 2015 Law Business Research Ltd www.TheLawReviews.co.uk No photocopying: copyright licences do not apply. The information provided in this publication is general and may not apply in a specific situation, nor does it necessarily represent the views of authors’ firms or their clients. Legal advice should always be sought before taking any legal action based on the information provided. The publishers accept no responsibility for any acts
    [Show full text]
  • Printmgr File
    IMPORTANT NOTICE NOT FOR DISTRIBUTION IN OR INTO THE UNITED STATES OR TO U.S. PERSONS OR OTHERWISE THAN TO PERSONS TO WHOM IT CAN LAWFULLY BE DISTRIBUTED IMPORTANT: You must read the following disclaimer before continuing. The following disclaimer applies to the attached offering memorandum. You are advised to read this disclaimer carefully before accessing, reading or making any other use of the attached offering memorandum. In accessing the attached offering memorandum, you agree to be bound by the following terms and conditions, including any modifications to them from time to time, each time you receive any information from us as a result of such access. CONFIRMATION OF YOUR REPRESENTATION: You have accessed the attached document on the basis that you have confirmed your representation to the issuer and to Deutsche Bank AG, London Branch, Citigroup Global Markets Limited, Goldman Sachs International, Morgan Stanley & Co. International plc, Mizuho International plc, Mizuho Securities Asia Limited, Crédit Agricole Corporate and Investment Bank, Merrill Lynch International, J.P. Morgan Securities plc, UBS AG Hong Kong Branch, Barclays Bank PLC, BNP Paribas, Credit Suisse (Hong Kong) Limited, Daiwa Capital Markets Europe Limited, ING Bank N.V., Singapore Branch, Nomura International plc and SMBC Nikko Capital Markets Limited (together, the “Initial Purchasers”) that (1) you are not a U.S. Person, as defined in Regulation S under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or a dealer or professional fiduciary acting
    [Show full text]
  • Earnings Results for the 6-Month Period Ended September 30, 2018
    Earnings Results for the 6-month Period ended September 30, 2018 November 5, 2018 IMPORTANT INFORMATION This presentation (this “Presentation”) is furnished to you as an investor in SoftBank Group Corp. (“SoftBank”) and is not, and may not be relied on in any manner as, legal, tax, investment, accounting or other advice or as an offer to sell or a solicitation of an offer to buy limited partnership or comparable limited liability equity interests in SoftBank Vision Fund L.P. (together with, as the context may require, any parallel fund, feeder fund, co-investment vehicle or alternative investment vehicle, the “Fund” or “Vision Fund” or “SVF”). This Presentation is not intended to be relied upon as the basis for any investment decision, and is not, and should not be assumed to be, complete. The contents of this presentation are not to be construed as legal, business or tax advice. None of the Fund, the manager of the Fund (the “Manager” or “SBIA”), SBIA or their respective affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the information contained herein and nothing contained herein should be relied upon as a promise or representation as to past or future performance of the Fund or any other entity referenced in this Presentation. Recipients of this Presentation should make their own investigations and evaluations of the information contained in this Presentation and should note that such information may change materially. References to any specific investments of the Fund, to the extent included herein, are presented to illustrate the Manager’s investment process and operating philosophy only and should not be construed as a recommendation of any particular investment or security.
    [Show full text]
  • Printmgr File
    OFFERING MEMORANDUM STRICTLY CONFIDENTIAL NOT FOR DISTRIBUTION IN THE UNITED STATES OF AMERICA OR TO U.S. PERSONS SoftBank Group Corp. $2,750,000,000 6.000% Undated Subordinated NC6 Resettable Notes $1,750,000,000 6.875% Undated Subordinated NC10 Resettable Notes Issue Price: 100.00% The $2,750,000,000 6.000% Undated Subordinated NC6 Resettable Notes (the “NC6 Notes”) and the $1,750,000,000 6.875% Undated Subordinated NC10 Resettable Notes (the “NC10 Notes” and, together with the NC6 Notes, the “Notes” and each, a “Tranche,” the terms and conditions of both Tranches being together, the “Conditions”)) will be issued by SoftBank Group Corp. (the “Company”) on or about July 19, 2017 (the “Issue Date”). The Notes will bear interest on their principal amount from (and including) the Issue Date to (but excluding) July 19, 2023 (in the case of the NC6 Notes) and July 19, 2027 (in the case of the NC10 Notes) at a rate of 6.000 percent and 6.875 percent per annum respectively. Thereafter, the prevailing interest rate on the NC6 Notes and the NC10 Notes shall be 4.226 percent and 4.854 percent per annum, respectively, above the 5 Year Swap Rate for the relevant Reset Period (as defined in the relevant Conditions) and from (and including) July 19, 2038 (in the case of the NC6 Notes) and July 19, 2042 (in the case of the NC10 Notes) (each, a “Second Step-up Date”) the applicable interest rate on the NC6 Notes and the NC10 Notes shall be 4.976 percent and 5.604 percent per annum, respectively, above the 5 Year Swap Rate for the relevant Reset Period.
    [Show full text]
  • ANNUAL REPORT 2019 Softbank Group Corp
    ANNUAL REPORT 2019 SoftBank Group Corp. ANNUAL REPORT 2019 Disclaimers to be correct, and actual results, performance or achievements could User Guide materially differ from expectations. Persons viewing this annual report • This annual report provides relevant information about the Group and This PDF has various features to make it easy to use and to search for should not place undue reliance on forward-looking statements. We does not constitute or form any solicitation of investment including any information. It also contains links to external websites to allow you to undertake no obligation to update any of the forward-looking statements offer to buy or subscribe for any securities in any jurisdiction. refer to external information easily. contained in this annual report or any other forward-looking statements • This annual report contains forward-looking statements, beliefs or opinions we may make. Past performance is not an indicator of future results and regarding the Group, such as statements about the Group’s future the results of the Group in this annual report may not be indicative of, and business, future position and results of operations, including estimates, Contents are not an estimate, forecast or projection of our future results. forecasts, targets and plans for the Group. Without limitation, forward- • We do not guarantee the accuracy of information in this report regarding Click to go to the first page of each category. looking statements often include the words such as “targets”, “plans”, companies (including, but not limited to, those in which SoftBank Vision SoftBank Group Corp. “believes”, “hopes”, “continues”, “expects”, “aims”, “intends”, “will”, Towards the AI Era Essential Information Growth Strategy Management Organization Financial Section Corporate Information Fund has invested) other than the Group which has been quoted from ANNUAL REPORT 2019 006 “may”, “should”, “would”, “could” “anticipates”, “estimates”, “proj- public and other sources.
    [Show full text]
  • In the Court of Chancery of the State of Delaware
    EFiled: Apr 07 2020 08:04AM EDT Transaction ID 65559679 Case No. 2020-0258- IN THE COURT OF CHANCERY OF THE STATE OF DELAWARE THE WE COMPANY, ) ) Plaintiff, ) ) v. ) C.A. No. ___________ ) SOFTBANK GROUP CORP. and ) SOFTBANK VISION FUND (AIV M1) ) L.P., a Delaware limited partnership, ) ) Defendants. ) VERIFIED COMPLAINT Plaintiff The We Company (the “Company”), acting by and under the direction of the Special Committee (the “Committee”) of the Company’s Board of Directors (the “Board”), by and through its undersigned counsel, for its complaint against Defendant SoftBank Group Corp. (“SBG”) and SoftBank Vision Fund (AIV M1) L.P. (“Vision Fund” and, with SBG, “SoftBank”), upon knowledge as to itself and information and belief as to all other matters, alleges as follows: NATURE OF THE ACTION 1. On October 22, 2019, SBG, its affiliate Vision Fund, the Company, We Holdings LLC, and the Company’s co-founder and former CEO Adam Neumann entered into a Master Transaction Agreement, as amended on December 27, 2019 (the “MTA”).1 The MTA provided for a series of transactions, including a debt financing arrangement and the accelerated funding of an existing $1.5 billion warrant agreement among SoftBank and the Company. 2. The centerpiece bargained-for benefit to be received by the Company’s minority stockholders in the MTA was a tender offer, through which SoftBank would purchase up to $3 billion worth of the Company’s stock held by the Company’s stockholders (the “Tender Offer”). The Committee viewed the Tender Offer as a critical component of the MTA because it provided much-needed liquidity to the Company’s minority stockholders—many of whom are longtime Company employees who depended upon receiving value for their shares.
    [Show full text]
  • Owner Operated Companies March 1, 2021
    OUR VIEWS ON ECONOMIC AND OTHER EVENTS AND THEIR EXPECTED IMPACT ON INVESTMENTS MARCH 1, 2021 The views of the Portfolio Management Team contained in this report are as of March 1, 2021 and this report is not intended to provide legal, accounting, tax or specific investment advice. Views, portfolio holdings and allocations may have changed subsequent to this date. This research and information, including any opinion, is compiled from various sources believed to be reliable but it cannot be guaranteed to be current, accurate or complete. It is for information only, and is subject to change without notice. The contents of this Newsletter reflect the different assumptions, views and analytical methods of the analysts who prepared them. OWNER OPERATED COMPANIES $42.52 billion for the year, both reflecting large gains from its stocks. Operating income, which Buffett considers a more accurate measure of Ares Management performance, fell 9% for the year to $21.92 billion. The stock buybacks Corporation – have continued in 2021, with Berkshire repurchasing more than $4 plans to buy billion of its own stock. It ended 2020 with $138.3 billion of cash. Buffett 60% of the private markets also said Berkshire’s annual meeting will be held in Los Angeles rather business of AMP Limited’s than Omaha, allowing 97-year-old Vice Chairman Charlie Munger, a asset management arm for Californian, to re-join him and answering about 3 and a half hours of AU$1.35 billion (US$1.06 shareholder questions. Vice Chairmen Greg Abel, 58, and Ajit Jain, 69, billion), weeks after scrapping who are widely considered frontrunners to succeed Buffett as chief a bid for all of the Australian executive, will also be available to answer questions.
    [Show full text]