SoftBank net rises 49% on Flipkart stake sale

Share sale in ARM China spurs growth

Japanese conglomerate SoftBank Group said its operating profit has jumped over 49% in the June quarter, helped by its sale of shares in Indian e-commerce firm Flipkart.

The company, which registered operating income of ¥715 billion ($6.42 billion) during the quarter, also attributed the growth to sale of the majority of chip designer ARM Holding’s Chinese operations.

Valuation gain

“[Operating income was] Boosted by valuation gain of ¥244.9 billion at SoftBank Vision Fund: valuation gain of ¥164.3 billion ($1.4 billion) was recorded for Flipkart based on the expected sales price, following the sales agreement,” SoftBank said in a statement.

It also recorded a “one-time gain of ¥161.3 billion following ARM’s China business becoming an associate from a subsidiary due to the establishment of a joint venture,” it added.

SoftBank said it estimates that the sale of Flipkart shares will occur within 24 months of the inception of the investment.

It added that the company has “calculated the deferred tax at 43.68%, being the Indian short-term capital gains tax rate expected to apply to the sale of Flipkart shares.”

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