SoftBank said to vie for $9.6 billion stake in Swiss Re1 min read . Updated: 30 Mar 2018, 03:40 AM IST
SoftBank is holding talks to buy a 25% stake in Swiss Re at about 100 Swiss francs to 105 Swiss francs a share
London/Zurich: SoftBank Group Corp. is edging closer to a deal to buy a stake in Swiss Re AG that would value the reinsurer at as much as 37 billion Swiss francs ($39 billion), according to people with knowledge of the matter.
Billionaire Masayoshi Son’s SoftBank is holding talks to buy a 25% stake at about 100 Swiss francs to 105 Swiss francs a share, the people said, declining to be identified as the deliberations are confidential. At 105 francs apiece, the deal will represent a 16% premium over Swiss Re shares’ close on 7 February before the firm confirmed a Wall Street Journal report it was in talks—and value the holding at $9.6 billion.
The terms of the potential SoftBank-Swiss Re deal are still fluid and may change, or the firms may fail to reach an agreement, the people said. Swiss Re rose 1.3% to 95.16 Swiss francs on Wednesday. The acquisition would buttress the finances of Son’s Japanese mobile-phone carrier with healthy cash flows from reinsurance. SoftBank has raised $93 billion out of a planned $100 billion for the world’s biggest private equity pool, while taking stakes in businesses including ride-hailing and chip-making.