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Altaba looks to raise $4.3 billion by selling remainder of its Yahoo Japan stake

Bloomberg

Altaba Inc., the holding company formed from the overseas investments not purchased by Verizon Communications Inc. in its acquisition of Yahoo Inc., will raise about $4.34 billion by selling its entire stake in Yahoo Japan Corp.

The company increased the size of the deal to include its entire holdings of 1.36 billion shares after initially saying it planned to sell about 750 million shares to raise about $2.5 billion, according to terms of the deal obtained by Bloomberg.

Altaba is offering shares of Yahoo Japan at ¥354 each, representing a discount of 4.6 percent from the stock’s last close, the company said Monday in a statement.

Altaba is Yahoo Japan’s second-largest shareholder, holding a 23.9 percent stake, trailing only SoftBank Group Corp., data compiled by Bloomberg show. It is Altaba’s second major sale of the Japanese company’s shares this year.

“Yahoo Japan’s equity supply/demand may worsen temporarily as a result, but longer term we expect the outcome will be positive for the firm,” Eiji Maeda, an analyst at SMBC Nikko Securities Inc., wrote in a report.

JPMorgan Chase & Co. and Goldman Sachs Group Inc. are arranging the offering, the terms show.

In February, Altaba warned that it would start divesting what was then a 35 percent stake in Yahoo Japan, fueling a sell-off of the web portal. The two companies in July announced a plan that would blunt the impact of a large stock sale by a big shareholder. The plan involved Yahoo Japan buying back $2 billion worth of its shares in a complicated deal with SoftBank.

Yahoo Japan didn’t immediately return phone calls seeking comment on the sale.