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Yahoo Japan buys back $2 billion of shares in three-way deal with SoftBank, Altaba

Reuters  |  TOKYO 

(Reuters) - Yahoo Corp is buying back around $2 billion worth of its shares from Group Corp as part of a three-way deal with its top shareholders, U.S. investment firm Inc and

The deal will see Altaba, which was formerly the Inc, sell down its stake in Yahoo by around $2 billion and raise its stake slightly in Yahoo to around 48 percent.

According to the structuring of the deal, SoftBank will buy 221 billion yen ($1.99 billion) of Yahoo Japan shares from Altaba, Yahoo Japan's second largest shareholder, via a tender offer at 360 yen per share, equivalent to Monday's close.

Yahoo Japan will then buy back 220 billion yen of stock from SoftBank. As a result of the transaction SoftBank's stake in Yahoo Japan will rise to 48.17 percent from 42.95 percent now, and will have about 27 percent.

has been selling down its Yahoo Japan stake. Two Altaba appointments to the Yahoo Japan board will step down as a result of the transaction announced on Tuesday.

SoftBank said in a statement the deal will strengthen cooperation between the company, one of Japan's big three telecoms firms, and Yahoo Japan, an internet heavyweight in areas such as and shopping.

The comes as SoftBank prepares to list its domestic telecoms unit in what could be the largest Japanese IPO in nearly two decades.

Yahoo Japan shares were up nearly 12 percent in morning trading. SoftBank shares were up 2 percent, with the benchmark index up 1 percent.

($1 = 111.0000 yen)

(Reporting by Chris Gallagher and Sam Nussey; Editing by Stephen Coates and Muralikumar Anantharaman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, July 10 2018. 08:37 IST
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