Loan Repayment through Yahoo! Inc. Share Delivery (0985N)
August 26 2011 - 2:06AM
UK Regulatory
TIDM56ID
RNS Number : 0985N
Softbank Corp
26 August 2011
August 26, 2011
Loan Repayment through Yahoo! Inc. Share Delivery
and Record of Special Income
SOFTBANK CORP. (hereafter "the Company") announces the loan
repayment of approximately USD 1,135 million financed from CITBANK,
N.A. by one of the Company's U.S. subsidiaries in February 2004
through the settlement of forward contracts related to the loan. In
accordance with the contract terms, the Company will deliver Yahoo!
Inc. shares as settlement for the related forward obligations. The
repayment is scheduled to complete late September 2011. As a result
of the settlement, the Company anticipates recording special income
in the consolidated statements of income for the fiscal year ending
March 31, 2012.
1. Summary of the transaction
The Company financed approximately USD 1,135 million from
CITIBANK, N.A. through its U.S subsidiary in February 2004 by
executing certain forward contracts which would be settled by the
Company's delivery of Yahoo! Inc. shares held by its U.S
subsidiary. (Please refer to the Company's press release issued on
March 2, 2004, "SOFTBANK announces financing through its U.S.
consolidated subsidiary".) Upon maturity of the loan, shares of
Yahoo! Inc. held by the Company's U.S. subsidiary will be delivered
to CITIBANK, N.A. to settle these obligations.
2. Impact on the consolidated financial results for the fiscal
year ending March 31, 2012*
In connection with the settlement of the obligations through
deliver of the Yahoo! Inc. shares, the Company plans to record
approximately JPY 76.4 billion of special income as gain on sale of
investment securities in the consolidated statements of income for
the fiscal year ending March 31, 2012. The impact on net income is
expected to be approximately JPY 44.7 billion net of income taxes
of approximately JPY 31.7 billion**.
* The gain on sale of investment securities, the impact on net
income and the income taxes are estimated values converted using an
exchange rate of USD 1 = JPY 77.
** Income taxes are assumed based on the gain on sale of
investment securities multiplied by expected tax rate of 41.5%.
3. Others
As a result of settling the obligations in this manner, the
SOFTBANK Group's ownership in Yahoo! Inc. will be reduced from
approximately 4% to as low as 0.002%.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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