Softbank Group shares slide 3% after triple setback at Didi, Arm, Grab, Telecom News, ET Telecom

HONG KONG: Shares of Japanese conglomerate SoftBank Group Corp fell more than 3% on Friday after the tech-investing giant was hit by three disappointments in 24 hours, including a poor start on Nasdaq for ride-sharing company Grab.

SoftBank, either on its own or through its Vision Fund, has made a series of massive investments around the world, often in large tech companies.

Its shares fell to 5,423 yen ($ 47.89) on Friday, before settling slightly higher but with losses of 23% over three weeks.

Chinese ridesharing giant Didi Global, 21.5% owned by the Vision Fund, announced on Friday that it would withdraw from the New York Stock Exchange and pursue a listing in Hong Kong, after coming under pressure from Chinese regulators on data security.

Hours earlier, the US Federal Trade Commission filed a lawsuit to block the planned acquisition of more than $ 80 billion by US chip company Nvidia Corp of UK chip technology provider Arm, which is owned by SoftBank, adding to the deal’s already significant global regulatory challenges.

Hours earlier, shares of Grab, Southeast Asia’s largest rideshare and delivery company, fell more than 20% when they debuted on Nasdaq on Thursday following the record-breaking 40 billion merger. of company dollars with a company blank check.

The Vision Fund is Grab’s largest shareholder, owning around 18.6% of the company.

“As long as such news is there, we will have to wait and delay the purchase of SoftBank Group,” said Shigetoshi Kamada, managing director of the research department at Tachibana Securities. “Anytime we see negative factors on SoftBank, we have to sell its stock.”

The group reported a second-quarter loss last month as its Vision Fund unit suffered a $ 10 billion hit due to a drop in the stock prices of its portfolio companies.

“We have no comment,” said a spokesperson for SoftBank, when asked about the FTC’s opposition to Nvidia’s purchase of Arm.

He also declined to comment on Didi’s plans to pull out of the New York Stock Exchange and the debut of the Grab stock, saying they were investments made by the Vision Fund and not directly by SoftBank.

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