56ID Cred Ag Co 27

TIDM56ID

RNS Number : 0985N

Softbank Corp

26 August 2011

August 26, 2011

Loan Repayment through Yahoo! Inc. Share Delivery

and Record of Special Income

SOFTBANK CORP. (hereafter "the Company") announces the loan repayment of approximately USD 1,135 million financed from CITBANK, N.A. by one of the Company's U.S. subsidiaries in February 2004 through the settlement of forward contracts related to the loan. In accordance with the contract terms, the Company will deliver Yahoo! Inc. shares as settlement for the related forward obligations. The repayment is scheduled to complete late September 2011. As a result of the settlement, the Company anticipates recording special income in the consolidated statements of income for the fiscal year ending March 31, 2012.

1. Summary of the transaction

The Company financed approximately USD 1,135 million from CITIBANK, N.A. through its U.S subsidiary in February 2004 by executing certain forward contracts which would be settled by the Company's delivery of Yahoo! Inc. shares held by its U.S subsidiary. (Please refer to the Company's press release issued on March 2, 2004, "SOFTBANK announces financing through its U.S. consolidated subsidiary".) Upon maturity of the loan, shares of Yahoo! Inc. held by the Company's U.S. subsidiary will be delivered to CITIBANK, N.A. to settle these obligations.

2. Impact on the consolidated financial results for the fiscal year ending March 31, 2012*

In connection with the settlement of the obligations through deliver of the Yahoo! Inc. shares, the Company plans to record approximately JPY 76.4 billion of special income as gain on sale of investment securities in the consolidated statements of income for the fiscal year ending March 31, 2012. The impact on net income is expected to be approximately JPY 44.7 billion net of income taxes of approximately JPY 31.7 billion**.

* The gain on sale of investment securities, the impact on net income and the income taxes are estimated values converted using an exchange rate of USD 1 = JPY 77.

** Income taxes are assumed based on the gain on sale of investment securities multiplied by expected tax rate of 41.5%.

3. Others

As a result of settling the obligations in this manner, the SOFTBANK Group's ownership in Yahoo! Inc. will be reduced from approximately 4% to as low as 0.002%.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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