As an update on the exit of Alibaba‘s co-founder, Jack Ma, from its board, SoftBank Group said it will use its stakes in Alibaba as collateral for a loan to fund its share buyback plan.
Masayoshi son’s Softbank Group said it will raise 1.25 trillion yen which is about $11.7 billion using Alibaba stock to fund buybacks of its own shares, Chief Executive Masayoshi Son said on Monday.
The SoftBank CEO made the comment at an earnings briefing after his company slid to a 1.4 trillion yen loss in the just-ended fiscal year, hit by massive losses at its Vision Fund.
SoftBank’s Vision Fund is the major investor in struggling WeWork.
Earlier today, Jack Ma, has resigned his membership on the board of Japan’s SoftBank Group Corp. His departure is a huge blow to Masayoshi Son, the founder of the Japanese telecom and technology group.
According to Reuters, SoftBank will propose three new appointments to the board, including group Chief Financial Officer Yoshimoto Goto, at its annual general meeting on June 25. The number of board members will expand to 13.
SoftBank will also propose the election of Lip-Bu Tan, CEO of chip design software firm Cadence Design Systems who is also chairman of venture capital firm Walden International, and Yuko Kawamoto, a professor at Waseda Business School as outside directors. Kawamoto will become its only female board member.