Yahoo Japan Corp buys back $2 billion shares from SoftBank, Altaba Inc

Vastavam web: Yahoo Japan Corp is buying back around $2 billion worth of its shares from SoftBank Group Corp as part of a three-way deal with its top shareholders, U.S. investment firm Altaba Inc and SoftBank. The deal will see Altaba, which was formerly the internet giant Yahoo! Inc, sell down its stake in Yahoo Japan by around $2 billion and SoftBank raise its stake slightly in Yahoo Japan to around 48 percent.

Yahoo Japan will then buy back 220 billion yen of stock from SoftBank. As a result of the transaction SoftBank’s stake in Yahoo Japan will rise to 48.17 percent from 42.95 percent now, and Altaba will have about 27 percent. Altaba has been selling down its Yahoo Japan stake. Two Altaba appointments to the Yahoo Japan board will step down as a result of the transaction announced on Tuesday.

The news comes as SoftBank prepares to list its domestic telecoms unit in what could be the largest Japanese IPO in nearly two decades. Yahoo Japan shares were up nearly 12 percent in morning Tokyo trading. SoftBank shares were up 2 percent, with the benchmark Nikkei 225 index up 1 percent.