Japanese telco Softbank has announced plans to divide its business into two companies. Group president Nikesh Arora will head up its foreign operations, while Ken Miyauchi, who heads up Softbank’s mobile operations in Japan, will be in charge of all domestic businesses.
Japanese telco Softbank (TYO:9984) announced on Monday plans to divide its business into two companies.
Group president Nikesh Arora will head up its foreign operations, which include stakes in US mobile operator Sprint (NYSE:S) and Chinese e-commerce company Alibaba (NYSE:BABA).
Ken Miyauchi, who heads up Softbank’s mobile operations in Japan, will be in charge of all domestic businesses including its investment in Yahoo Japan (TYO:4689).
Both subsidiaries will be wholly owned by Softbank Group.
The transfer is due to complete by 31 December 2016.
“The impact of the reorganisation on [Softbank Group’s] consolidated financial results for the fiscal year ending March 2016 and fiscal year ending March 2017 will be minor,” the company said in a statement.
The reorganisation scheme follows Softbank’s announcement in February of its biggest ever buyback, of up to 167 million, or 14.2%, of its shares between 16 February 2016 and 15 February 2017.
Softbank, founded by Masayoshi Son (pictured), has relied heavily on its domestic mobile unit as it works to turn around Sprint.
Softbank reported an operating profit of Y189.6bn (US$1.6bn) for Q4 2015 and revenue of Y2.39trn (US$20.9bn).
