SoftBank to Sell Supercell Stake at USD 10.2 Billion Valuation
21.6.2016 10:09 | Business Wire
SoftBank Group Corp. (“SBG”) today announced that certain of its subsidiaries, Kahon 3 Oy and SoftBank Group Capital Limited (collectively, “SBG’s Two Subsidiaries”), have entered into a definitive agreement with Tencent Holdings Limited (“Tencent”) and its affiliate (the “Buyer”), Supercell Oy (“Supercell” or the “Company”), and other parties whereby SBG’s Two Subsidiaries will sell all of their 72.2% stake (on a diluted basis1) in Supercell to the Buyer for expected aggregate cash consideration of approximately USD 7.3 billion2 (approximately JPY 770 billion3) (the “Transaction”). In addition, SBG’s Two Subsidiaries will receive a dividend of approximately USD 0.4 billion (approximately JPY 43 billion) from Supercell prior to closing of the transaction.
Following the closing, Tencent is anticipated to syndicate its interests in the Buyer, but, under the terms of the agreement, completion of the transaction is not dependent on such syndication. Upon transfer of the shares, Supercell will no longer be a subsidiary of SBG and will no longer be consolidated into SBG’s financial results.
The implied valuation for 100% of Supercell’s equity is approximately USD 10.2 billion2 (approximately JPY 1.1 trillion). Total returns to SBG’s investment through SBG’s Two Subsidiaries, including dividends received during ownership, amount to approximately USD 8.4 billion (approximately JPY 880 billion), representing 2.9x capital invested and 93% IRR.
|*1||Percentage interest as of May 15, 2016 calculated based on the aggregate number of (i) outstanding Company shares, (ii) vested and unvested Company options to purchase shares and vested and unvested restricted stock units (“RSUs”) and (iii) RSUs available for grant pursuant to the Company’s current equity incentive plans (excluding conversion options held by SBG’s subsidiary). The same applies to the percentage interests set forth below.|
|*2||The final purchase price payable to SBG’s Two Subsidiaries will be calculated as of the closing of the Transaction based upon their percentage interest (as described in footnote 1) of Company equity value representing (i) the Supercell enterprise value of approximately USD 9.5 billion, plus (ii) the net cash balance of Supercell and its subsidiaries, minus (iii) any unpaid Supercell transaction expenses. The same applies below.|
|*3||Converted at USD = JPY 104.69 as of June 20, 2016. The same applies to the conversions below.|
1. Purpose of the Transaction
Tencent is a leading Internet value added services provider headquartered in China, and provides its users with a diversified range of services including social communication, PC and smart phone games, online news as well as video and music streaming contents. Supercell is a mobile game company headquartered in Finland, which became SBG’s subsidiary at the end of October 2013.
SBG’s decision to sell its stake in Supercell is driven by its continued focus on disciplined capital allocation, including further deleveraging, as part of its SoftBank 2.0 transformation strategy.
2. Summary of the Transaction
SBG’s Two Subsidiaries will divest their entire 72.2% stake (on a diluted basis1) in Supercell to the Buyer for aggregate cash consideration of approximately USD 7.3 billion (approximately JPY 770 billion) (the “Sale Price”), based on an assumed equity value of Supercell of approximately USD 10.2 billion (approximately JPY 1.1 trillion). The proceeds from the sale will be realized in three payments following the schedule set forth below:
− First payment (August 5, 2016 (expected)): Estimated 48% of Sale Price
− Second payment (November 3, 2016 (expected)): Estimated 50% of Sale Price
− Third payment (August 5, 2019 (expected)): Estimated 2% of Sale Price
The transfer of shares is expected to occur on August 5, 2016, with half of the shares being kept in an escrow account until the time SBG’s Two Subsidiaries receive the abovementioned second payment of the Sale Price.
Separately, SBG's Two Subsidiaries (along with other existing Supercell stockholders) are expected to receive a dividend payment prior to the date on which the Supercell shares are transferred which, together with other dividend payments received thus far from Supercell, is expected to bring the aggregate amount of dividend payments received to approximately USD 1.1 billion (approximately JPY 110 billion).
3. About Supercell
|(1) Name||Supercell Oy|
|(2) Headquarters||Itämerenkatu 11-13 00180 Helsinki Finland|
|(3) Name and title of representative||CEO Ilkka Paananen|
|(4) Nature of business||Production and distribution of mobile game applications|
|(5) Common stock||EUR 3,000|
|(6) Established||May 2010|
4. About Tencent
|(1) Name||Tencent Holdings Limited|
Kejizhongyi Avenue, Hi-tech Park
Nanshan District, Shenzhen, The PRC
|(3) Name and title of representative||CEO Ma Huateng|
|(4) Established||November 1998|
5. SBG’s Ownership in Supercell Before and After the Transaction (Including Indirect Ownership)
|Ownership before the Transaction||72.2% (diluted basis)|
|Ownership after the Transaction||0%|
6. Expected Impact on Consolidated Financial Results
Upon transfer of the shares (August 5, 2016), Supercell will no longer qualify as a subsidiary of SBG and will no longer be consolidated into SBG’s financial results. Preceding this, in accordance with the fact that a definitive agreement for the sale of Supercell shares was executed on June 21, 2016, assets and liabilities of Supercell will appear as assets and liabilities held for sale on SBG’s consolidated financial statements for the three-month period ending June 30, 2016. Supercell’s net income and loss from April 1, 2016 until the date of the share transfer will appear as discontinued operations, separate from continuing operations.
Net income/loss of Supercell for the fiscal year ended March 31, 2016 will also be revised retroactively, to appear under discontinued operations.
SBG will separately announce the gain from sales of shares in Supercell once it is determined following the completion of the calculation of the carrying amount of Supercell on a consolidated basis as of the time of sale. However, SBG currently expects to record around JPY 600 billion of pre-tax gain under discontinued operations on its consolidated statements of income for the fiscal year ending March 31, 2017.
|Execution of definitive agreement||June 21, 2016|
|Transfer of shares and receipt of first payment (estimated 48% of Sale Price)||August 5, 2016 (expected)|
|Receipt of second payment (estimated 50% of Sale Price)||November 3, 2016 (expected)|
|Receipt of third payment (estimated 2% of Sale Price)||August 5, 2019 (expected)|
Among the shares to be sold by SBG’s Two Subsidiaries, half of them will be kept in an escrow account after the date of share transfer, until the time SBG’s Two Subsidiaries receive the abovementioned second payment of the Sale Price.
8. Management Quotes
Masayoshi Son, Chairman and CEO of SoftBank Group Corp., said: “We have enjoyed an outstanding relationship with Ilkka and the Supercell team, and it has been our privilege to be part of Supercell’s incredible growth story. Over the life of our investment, Supercell has operated as an independent company, and its unique culture of independent teams has proven itself repeatedly. I have great respect for Tencent and its leadership in games, and believe that with its commitment to respect Supercell’s independence, Tencent represents the ideal partner to take Supercell’s business to the next level. Our decision to divest our shares is driven by our continued focus on monetization for the benefit of our shareholders and on capital structure discipline, both key pillars of our SoftBank 2.0 strategy."
Ilkka Paananen, CEO of Supercell, said: “Today is about chasing a future for Supercell that we have always dreamed of. We founded Supercell to make great games that people all over the world would play for decades and become part of the rich history of games. We've made excellent progress - over the past six years, we’ve created four top games that are now played by over 100 million people every single day. Tencent’s investment secures what has made all of this possible, which is our independence and unique culture of small and independent teams. We want Supercell to be the world’s best place for creative people to create games. At the same time, this new partnership offers us exciting growth opportunities in China, where we will be able to reach hundreds of millions of new gamers via Tencent’s channels.” Read more thoughts from Ilkka on the transaction: http://supercell.com/en/nextchapter/.
Martin Lau, President of Tencent, said: “Supercell is known for its creativity, focus on player experience, and unique culture, which have enabled it to create innovative mobile games that are wildly popular globally. Tencent is dedicated to building long-term strategic partnerships with leading game companies. We are excited that Supercell is joining our global network of game partners, and will preserve their independence and enhance their advantages, thus bringing even more exciting gaming experiences to players around the world. It is important to us that Supercell stays true to its roots by sustaining its unique culture, continuing to be headquartered in Finland, and representing its home proudly.”
SoftBank Group Corp. Communications
Sard Verbinnen & Co.
Om Business Wire
Business Wire, a Berkshire Hathaway company, is the global leader in multiplatform press release distribution.
Følg saker fra Business Wire
Registrer deg med din epostadresse under for å få de nyeste sakene fra Business Wire på epost fortløpende. Du kan melde deg av når som helst.
Siste saker fra Business Wire
Spirent Tests Wi-Fi Network Performance with O2 at the Coca-Cola London Eye17.8.2017 15:57 | Pressemelding
Spirent Communications plc (LSE:SPT), today announced its Landslide E10 network test platform has been used with O2 to validate the Wi-Fi network performance and capacity at the Coca-Cola London Eye, before the launch of a new smartphone application last month. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170817005758/en/ Spirent Landslide E10 helped O2 validate Wi-Fi performance and capacity at the Coca-Cola London Eye, before the launch of a new smartphone application last month. (Photo: Busines Wire) Merlin Entertainments plc, operator of the London Eye, wanted to measure its Wi-Fi network performance, to ensure its infrastructure could provide an excellent experience for users of the new app, which puts increased demands on the Wi-Fi network. “The London Eye is a global attractio
Watch BizWireTV: A Camera You Can Wear and Krispy Kreme’s Famous Donuts Get Eclipsed with Chocolate17.8.2017 12:08 | Pressemelding
On BizWireTV, catch some Quick Biz Hits and see the latest in Star Power. Also see what’s happening in the startup world with the Accelerator Report, featuring the VC Watch and this week’s Startup Standout. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170817005305/en/ BizWireTV is hosted by Jordyn Rolling (Photo: Business Wire Now you can watch BizWireTV, and the latest breakthroughs in tech from the biggest brands, on any screen you want by downloading the new app through the Apple TV and iPhone App Store and Google Play for Android devices. Top of the Wire Introducing FrontRow: the camera re-invented. Watch BizWireTV to see more disruptors as well as the top 5 trending stories of the week! A core c
PsiOxus Therapeutics Announce Two New Board Appointments: New Board Appointments Strengthen Company’s US Presence17.8.2017 07:00 | Pressemelding
PsiOxus Therapeutics, Ltd. (PsiOxus) today announced the appointment of Charles Rowland and Duncan Higgons to the Board of Directors as part of an ongoing drive to expand in the US. Charles Rowland was most recently the President and Chief Executive Officer (CEO) of Aurinia Pharmaceuticals, a clinical stage pharmaceutical company focused on the global lupus nephritis market. Prior to this, he served as the Vice President and Chief Financial Officer (CFO) of ViroPharma, during which time the company grew into a global biopharmaceutical business with $500 million in annual revenues until it was acquired by Shire plc for $4.2 billion. Before joining ViroPharma, Mr. Rowland was executive Vice President, CFO, and interim co-CEO, for Endo Pharmaceuticals. In his earlier career, Charles held finance and operational positions at Biovail Pharmaceuticals, Breakaway Technologies, Pharmacia
Smarsh Adds Voice Archiving Offering with Acquisition of London-Based Cognia17.8.2017 06:59 | Pressemelding
Smarsh®, providing information archiving solutions for compliance, e-discovery and risk management, has completed the acquisition of Cognia, a worldwide leader in cloud-based voice archiving, audio search and analytics. Smarsh will leverage Cognia’s intellectual property and development resources to offer its global customer base enhanced capabilities around mobile and fixed-line voice communication – alongside a market-leading range of electronic communications – within The Archiving Platform. The acquisition will expand the existing presence of Smarsh in Europe and is central to its MiFID II compliance solution for financial firms. In addition to capturing incoming and outgoing communication from fixed-line recording solutions, Cognia uniquely captures voice content directly from leading mobile carriers. Carrier-direct capture is the most reliable and automated method for capt
Schlumberger Announces Third-Quarter 2017 Results Conference Call16.8.2017 21:23 | Pressemelding
Schlumberger Limited (NYSE:SLB) will hold a conference call on October 20, 2017 to discuss the results for the third quarter ending September 30, 2017. The conference call is scheduled to begin at 8:30 am US Eastern time and a press release regarding the results will be issued at 7:00 am US Eastern time. To access the conference call, listeners should contact the Conference Call Operator at +1 (800) 288-8967 within North America or +1 (612) 333-4911 outside of North America approximately 10 minutes prior to the start of the call, and ask for the “Schlumberger Earnings Conference Call.” A webcast of the conference call will be broadcast simultaneously at www.slb.com/irwebcast on a listen-only basis. Listeners should log in 15 minutes prior to the start of the call to test their browsers and register for the webcast. Following the end of the conference call,
Rimini Street Named to Inc. 5000 List for Seventh Consecutive Year16.8.2017 18:20 | Pressemelding
Rimini Street, Inc., a global provider of enterprise software products and services, and the leading independent support provider for Oracle and SAP products, today announced that it was named to Inc. magazine’s 36th annual Inc. 5000 list for the seventh consecutive year. The Inc. 5000 list is an exclusive ranking of the nation’s fastest-growing private companies and represents the most comprehensive look at America’s entrepreneurs. This Smart News Release features multimedia. View the full release here: http://www.businesswire.com/news/home/20170816005908/en/ Rimini Street has earned a place on the annual Inc. 5000 list since 2011, joining an elite group – approximately 2% – of Inc. 5000 honorees to ever achieve this milestone. (Photo: Business Wire) Rimini Street has earned a place on the annual Inc. 5000 list since 2011, joining an elite group – approximatel
I vårt presserom finner du alle våre siste saker, kontaktpersoner, bilder, dokumenter og annen relevant informasjon om oss.Besøk vårt presserom