The Financial Express

Japan’s SoftBank to buy 20pc stake of bKash

| Updated: November 11, 2021 21:15:11

Japan’s SoftBank to buy 20pc stake of bKash

Japanese multinational conglomerate SoftBank Group Corporation is set to buy 20 per cent stake of bKash, one of the largest mobile financial service providers in Bangladesh.

bKash is a subsidiary of BRAC Bank. BRAC Bank was listed on the capital market in 2007.

BRAC Bank, the majority owner of bKash, took the decision on Wednesday in its board meeting, according to a disclosure posted by the bank on the website of the Dhaka Stock Exchange (DSE) on Thursday.

Following the decision, stocks of the BRAC Bank topped the gainers’ list at the DSE, with a 9.93 per cent rise to reach Tk 48.7 at 11:45 -- when the report was filed.

In the board meeting, BRAC Bank has approved the execution of a share purchase and subscription agreement amongst bKash and its existing shareholders.

The bank also announced that the new investment would not change its shareholding in bKash.

A woman using a mobile phone walks past the logo of SoftBank Corp in Tokyo, Japan on December 18, 2014 — Reuters/Files

This means the new investor will get some fresh shares and buy bKash stake from any one or more of the existing investors.

The existing shareholders included BRAC Bank, Money in Motion LLC, International Finance Corporation, Bill & Melinda Gates Foundation, Alipay Singapore E-Commerce Private Limited and Board of Trustees of bKash Employee Share Option Plan Trust, and the proposed investor, SVF II BEAM (DE) LLC (SoftBank), it said.

“In accordance with the terms and conditions of the agreement, both primary and secondary investments will be made by SoftBank in bKash, whereby SoftBank will acquire 20 per cent share (on a fully diluted basis) of bKash,” according to the disclosure.

There will be no changes in the number of shares held by BRAC Bank in bKash and, on completion of the transaction, the bank will continue to remain the majority voting shareholder of bKash, it added.

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