SoftBank Group is set to book an estimated gain of 4.6 trillion yen ($34.08 billion) on settling prepaid forward contracts using shares in Alibaba Group Holding.

SoftBank is looking to reduce its stake in Alibaba to 14.6% from 23.7%.

SoftBank booked a record quarterly net loss due to sliding valuations at its Vision Fund investment arm.

The estimated gain includes 2.4 trillion yen from the revaluation of shares in the Chinese e-commerce giant and a derivative gain of 0.7 trillion yen.

SoftBank bought into Alibaba for $20 million in 2000 but the Chinese company’s has lost more than two thirds of its value from highs in late 2020, hit by Beijing’s crackdown on the tech sector and its scrutiny of founder Jack Ma.

The SoftBank transaction is not expected to result in additional sales of Alibaba shares on the market as the shares were hedged at the time of the original monetisation, SoftBank said.

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