SoftBank Vision Fund sells Uber shares worth $2 billion

SoftBank Group's Vision Fund has sold about $2 billion worth of Uber shares, in a bid to capitalise on the surge in the US ride-hailing giant's value, according to a filing with the U.S. Securities and Exchange Commission.

As per the filing, SoftBank Vision Fund has sold 38 million shares for $53.46 apiece. It still remains the company's main shareholder, with a 10% stake worth about $10 billion at current prices.

SoftBank has invested heavily in ride-hailing platforms across the world in recent years, from Uber in the United States to Didi Chuxing in China, India's Ola and Singapore's Grab. This decision initially appeared to have backfired after Uber's lacklustre initial public offering in 2019 and the Covid-19 virus outbreak bringing the demand for ride-hailing to a screeching halt.


By the end of March, Uber's share price had fallen below $15, from $42 on its first day of trading in May 2019.

However, the company's food delivery business witnessed significant growth during the pandemic, surpassing its flagship ride-hailing business for the past few quarters. This has resulted in the company's share price soar to about $54.59 at market close on January 11, 2021.

Over the past year, SoftBank has sold ARM to Nvidia in a $40 billion deal, and divested its majority stake in phone-distribution company Brightstar to a private equity firm. The firm also sold a $14 billion stake in its Japanese telecom unit, a majority stake in US carrier T-mobile in a $21 billion deal and about $13.7 billion worth stock sale in Chinese e-commerce giant Alibaba.

(With agency inputs)