SoftBank to sell 5% of domestic telecom to raise cashSoftBank to sell 5% of domestic telecom to raise cash
People walk behind the logo of SoftBank Corp in Tokyo

TOKYO (Reuters) – SoftBank Group Corp <9984.T> said it plans to sell 5% of its domestic telco SoftBank Corp <9434.T> as part of its plan to raise $41 billion through asset sales.

The sale of 240 million shares for a yet to be determined price is set to close on May 26 and will leave SoftBank Group with a 62.1% stake in Japan’s third-largest wireless carrier.

SoftBank needs cash for a record stock buyback aimed at supporting the price of its shares, which have been used by Chief Executive Masayoshi Son as collateral for loans, as its tech investments falter.

It is in talks to raise about $20 billion by selling part of its stake in T-Mobile US Inc <TMUS.O>, the Wall Street Journal reported this week.

The conglomerate also said on Monday it plans to raise 1.25 trillion yen ($11.6 billion) by monetising part of its stake in China’s Alibaba Group Holding Ltd <BABA.N> through derivative contracts.

(Reporting by Sam Nussey; Editing by Toby Chopra and Christopher Cushing)