4.5.08

Softbank / Oak Pacific Interactive

Softbank, the Japan-listed IT conglomerate, plans to acquire about a 40% stake in unlisted China-based Internet company Oak Pacific Interactive, reported the Nihon Keizai Shimbun.

The report, which did not cite sources, disclosed that Softbank has already obtained a 14% interest in Oak Pacific, which it acquired for about JPY 10bn. The Japanese company also holds about a 20% stake in terms of preferred shares. Altogether, Softbank will pay about JPY 40bn (USD 384m) to acquire the 40% interest, according to the report. As a result, Softbank will become the leading shareholder in Oak Pacific.

Softbank chief executive officer, Masayoshi Son, will become a director of Oak Pacific, the report added. Around 22 million members use Oak Pacific's social networking site, and Softbank plans to offer online advertising and video distribution to users of the site. Softbank also hopes to obtain capital gains when Oak Pacific goes public, according to the report.

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