The Financial Times relies on filings. It was reported that there , SoftBank has orchestrated the sale of about a third of his Alibaba stake this year through these deals

A type of derivative that allows the Japanese company to raise immediate cash  while retaining the ability to hold its shares. can do. 

Image Credit : vuori softbank

The company has sold more than half of its Alibaba stake through these types of derivatives, the report said.

Image Credit : vuori softbank

SoftBank may reduce its stake  below the threshold for retaining a seat on the board  and not include a share of Alibaba's profits in its financial statements, he added.  

 SoftBank Group shares rose as much as 2.6% in early trading in Tokyo  on Thursday (August 4). Benchmark Topix rose 0.2%. 

Image Credit : vuori softbank

 Willer Cheng, an analyst at Forsyth Barr Asia, told Bloomberg News that this kind of deal is a deferred approach because the latter "could shock stocks in the short term.

Willer Cheng said it is better than a complete sell on the market. "However, it's an inventory reduction." 

Image Credit : vuori softbank

 SoftBank has previously raised funds in Alibaba shares, including prepaid futures contracts the company has been using for years. 

Image Credit : vuori softbank

SoftBank said in its earnings report released in May that about $13.17 billion was raised from existing futures contracts using his Alibaba shares. 

Image Credit : vuori softbank

SoftBank founder Masayoshi Son was an early proponent of his Alibaba, billionaire he's Jack Ma, and the Chinese e-commerce giant remains his most successful investment.

In recent years, SoftBank has used  Alibaba shares to engage in complex derivative transactions, including risk hedging. 

Image Credit : vuori softbank

 A slump in global stock markets has hit his SoftBank earnings, driving down valuations of its technology investments and raising concerns about its financial health.

Son has repeatedly said SoftBank has enough cash to weather the stock market crisis, but  the value of new investments could shrink to just a quarter of what it was a year ago.

"SoftBank has used this type of 'futures selling' to raise funds in recent years

Image Credit : vuori softbank

Investment banks that arrange this derivative product do not have to sell all their shares immediately,” said  UOB Kay Hian of Hong Kong. executive his director Steven Leung said.