Uber (UBER) Falls as Softbank Offers $2.1 Billion Stake via Goldman, Contradictory Reports on Reasons For Selling

July 29, 2021 7:06 AM EDT

Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.

Shares of Uber (NYSE: UBER) are down 4.4% in pre-open Thursday on reports the Japanese investment giant Softbank is looking to trim its stake in the ride-hailing company.

Goldman Sachs is handling the sale as SoftBank looks to sell 45 million shares with a price range of $44.15 to $46.14, according to Bloomberg. The Japan-based investors owned 184 million shares as of March 31.

Based on yesterday's share price of Uber, the block of offered shares is worth about $2.1 billion. Any buyer will have a 30-day lockup period.

When it comes to why SoftBank is selling a large block of shares, Reuters reports that the company is simply looking to cash out and take some profits off the table.

This is contrary to a report in CNBC, which stated SoftBank is looking to raise cash to partially cover losses in Didi and Alibaba. It is believed that SoftBank lost $4 billion on its Didi investment.

"Gains from selling Uber shares should help to offset losses on other shares held in its portfolio to an extent," said Jun Kitazawa, strategist at Miki Securities.

SoftBank shares closed over 4% higher in Tokyo on today’s news.

Uber is due to announce quarterly results on Aug. 4.

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

You May Also Be Interested In

Related Categories

Equity Offerings, Trader Talk

Related Entities

Goldman Sachs, Pre Market Movers