|Bid||0.00 x 0|
|Ask||0.00 x 0|
|Day's range||6,396.00 - 6,519.00|
|52-week range||2,609.50 - 7,077.00|
|Beta (5Y monthly)||1.64|
|PE ratio (TTM)||N/A|
|Earnings date||04 Nov 2020 - 09 Nov 2020|
|Forward dividend & yield||44.00 (0.69%)|
|Ex-dividend date||30 Mar 2020|
|1y target est||13,753.00|
(Bloomberg) -- The record $40 billion deal for wireless carrier NTT Docomo Inc. is sparking discussion of whether an even bigger Japanese buyout could be in the works: SoftBank Group Corp.Founder Masayoshi Son has debated for years whether to take his conglomerate private because of a persistent discount between his stock and the perceived value of his assets, particularly Alibaba Group Holding Ltd. shares. The 63-year-old billionaire revived informal talks this year after his shares tumbled and he sold off assets.The Docomo deal signals Japan has plenty of capital for deals on the kind of scale unthinkable in the past. Nippon Telegraph & Telephone Corp. will borrow the entire purchase price to finance the affiliate’s buyout, even though it had 1.09 trillion ($10.3 billion) in cash and equivalents at the end of March.“A successful buyout of Docomo could spur a similar move by SoftBank. There is plenty of liquidity for both,” said Justin Tang, head of Asian research at United First Partners in Singapore. “For lenders, this can be a huge source of revenue. And shareholders can have a catalyst in which to realize the value of their holdings.”Son has been frustrated that investors won’t pay more for his stock considering his company’s holdings. SoftBank posts on its website an estimate that its shareholder value is about 13,000 yen a share, a figure it calculates by adding the value of stakes in Alibaba, SoftBank Corp. and other assets, then subtracting debt. That’s roughly half the roughly 6,500 yen a share SoftBank Group trades at.After his shares plummeted in March, Son announced a record 4.5 trillion yen asset sale plan and a record 2.5 trillion yen buyback program. In addition, he’s cut a deal to sell chip designer Arm Ltd. to Nvidia Corp. for about $40 billion in cash and stock, although regulatory approval is expected to take more than a year.“Given SoftBank’s valuation discount and the availability of cheap financing, there is a good chance of an MBO,” said Tang.Goldman Sachs Group Inc. analysts published a research note after the Docomo buyout, arguing the deal is likely to spark further corporate alignments in the country. The report didn’t specifically mention SoftBank.The Docomo deal does present at least two challenges for SoftBank. NTT is buying out public shareholders in part so it can lower wireless rates more easily, a competitive threat that may hurt SoftBank Corp., Son’s domestic telecom unit. Newly anointed Prime Minister Yoshihide Suga has made lower phone tariffs a key part of his early agenda.In addition, NTT is paying 40% more than Docomo’s share price before the announcement. SoftBank shareholders could ask for a similar premium if Son pursues a buyout, according to Bloomberg Intelligence analyst Anthea Lai.SoftBank Group’s market capitalization is about $128 billion, so that kind of premium would mean valuing the company at $179 billion. That would be by far the largest buyout ever.Between the stake held by Son himself and the treasury shares SoftBank has already bought back, more than 30% of the company’s stock is already controlled by management, according to Bloomberg-compiled data.SMBC Nikko Securities Inc. analyst Satoru Kikuchi wrote earlier this month that a management-led deal to take the company private looked feasible.“The firm seems to be selling off assets rapidly and is considering the sale of its ARM holdings earlier than initially planned,” Kikuchi said in a research note. “Given the scale of its buyback operations, we think delisting via management buyout is a possibility.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Fortress Investment Group is turning to corporate junk-bond buyers and overseas investors to help finance its planned passenger train from Southern California to Las Vegas through the sale of $3.2 billion of tax-exempt debt, a deal that’s far larger than most issued in the state and local-government securities market.Morgan Stanley, the lead underwriter, began reaching out to traditional U.S. high-yield money managers on Tuesday to gauge interest, according to people familiar with the matter who asked not to be identified because the discussions are private. The bank has also pitched the securities to European bond buyers familiar with infrastructure projects.Such buyers are likely needed given the size of the securities offering. It would be the largest ever sale of unrated debt in the municipal market, a haven for risk averse investors where high-yield bonds are largely held by a handful of firms.In initial conversations with potential buyers, the bank has indicated that the securities will yield as much as 7.5%, the people said. The sale is not expected to price until next week. A 7.5% yield for 30-year debt would be nearly five times what the highest rated state and local governments pay, data compiled by Bloomberg show.Ben Porritt, a spokesperson for Fortress’s Brightline Holdings, the company behind the railroad, said the project is generating a lot of interest. “Brightline West is one of the most ambitious and transformative projects in the country and we are excited to introduce it to investors,” he said. A spokesperson for Morgan Stanley declined to comment.Fortress Debt Sale for Vegas Train Sees Bond Market SkepticsThe offering will test the appetite for risky securities in the municipal market, where investors are desperate for fatter returns amid historically low interest rates. It comes as the pandemic continues to weigh on the economy, including the travel and entertainment industry that the Brightline project depends upon.The sale is being done through California and Nevada agencies that extended their power to issue tax-exempt debt. The proceeds will finance construction of a rail line from Las Vegas to the California desert town of Apple Valley, about 90 miles (145 kilometers) from Los Angeles. The company intends to issue more debt to finance an extension to Los Angeles that will begin running in 2024, according to offering documents.Offering tax-exempt bonds to high-yield investors worked out well for Fortress last year, when it raised a then-record $1.75 billion of unrated municipal debt for a passenger rail project in Florida under the name Virgin Trains USA. Those securities were sold at initial yields of as much as 6.5%.The unprofitable Florida line, however, has struggled to meet revenue estimates and has suspended service because of the pandemic. The price of its bonds due in 2049 has slid to 87.5 cents on the dollar to yield around 8.6%. The company is looking to boost future ridership by adding stations.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
XtalPi, an American-Chinese biotech firm that focuses on AI-assisted drug discovery, has raised a $319 million round C from a slate of enthusiastic investors led by SoftBank's Vision Fund. XtalPi works with major pharmaceutical companies like Pfizer that need to identify promising new drug-like molecules and learn as much about them as possible. This company, founded in 2014, purports to offer extremely low-level simulation and prediction of target molecules, both simulating the physics at atomic levels and doing the more traditional data science work that eliminates dead ends and points towards more fruitful avenues for investigation.