Softbank Corp. said Thursday its U.S. subsidiary has decided to sell part of its 42 percent equity stake in UT Starcom Inc., one of its U.S. affiliates, to help cut Softbank's interest-bearing group debts.
The proceeds from Softbank America Inc.'s sale of the UT Starcom shares will come to $214 million, or 28 billion yen, Softbank said. Delaware-based UT Starcom makes Web and non-Web network access equipment.
The deal is the latest in a string of share sales involving SBA's subsidiaries and affiliates since December.
The spate of transactions is expected to generate 150 billion yen for Softbank, it said. The money will be used to cut the company's group debts.
On Dec. 28, Softbank said SBA would sell part of its stake in Yahoo Inc. of the United States, and remove Key3Media Group Inc. from the list of Softbank's group companies whose financial results must be consolidated under law into its group results.
The share sale and removal of Key3Media alone will likely help Softbank cut its debts by almost 100 billion yen, Softbank said.
SBA also sold its 18 million E*TRADE Group Inc. shares for 21 billion yen on Jan. 30.
Softbank said its group expects soon to pocket 8.5 billion yen through the sale of its 50,000 shares in Softbank Investment Co., a subsidiary of Softbank Finance Co., wholly owned by Softbank.
Softbank Investment will debut on the first section of the Tokyo Stock Exchange on Feb. 15.