Softbank Adjusts Stock Swap Deal with eAccess to Reflect Share Price Slump
6:47a ET November 2, 2012 (Dow Jones)
Softbank Adjusts Stock Swap Deal with eAccess to Reflect Share Price Slump
By Paul Jackson
TOKYO--Softbank Corp. (9984.TO) said Friday it has adjusted the stock swap ratio in its deal to take over smaller domestic rival eAccess Ltd. (9427.TO) in a renegotiated deal still valued at Y180 billion ($2.25 billion).
Softbank, one of Asia's biggest Internet conglomerates, said the swap ratio continues to give each eAccess share a value of Y52,000 yen per share, with Softbank's shares to be valued at Y2,589 instead of the originally agreed Y3,108.
The move reflects the slump in Softbank's share price since it announced its ambitious acquisition plans for U.S. wireless carrier Sprint Nextel Corp. (S) last month.
Softbank shares finished trading at Y2,714 on the Tokyo Stock Exchange on Friday.
The renegotiated terms also bring forward the effective date of the share swap. The shares of eAccess are now scheduled to be delisted Dec. 26 instead of Feb. 25, with the swap coming into effect Jan. 1 instead of Feb. 28.
The deal will elevate Softbank's position closer to that of No. 2 mobile carrier KDDI Corp. (9433.TO), which in October last year ended Softbank's monopoly as provider of Apple Inc.'s (AAPL) iPhone in Japan.