Softbank buys 10.1% stake in Swedish firm Sinch

Cloud computing services provider, Sinch, has announced that Softbank-owned SB Management has bought a 10.1% stake in the company. 

Sinch said in a statement it had issued 3.2 million new shares at a subscription price of 1.050 crowns per share, a 6.6% discount to Monday’s closing price, raising about 3.3 billion Swedish crowns ($386 million) for the firm.

“In connection with the Share Issue, and due to strong demand, certain larger shareholders, including several co-founders (the “Selling Shareholders”), have sold 5,200,000 existing shares in the Company to SB Management (the “Sell-down”), meaning that SB Management will hold in total 6,400,000 shares, corresponding to approximately 10.1 percent of the shares and votes in the Company following the Share Issue and the Sell-down. The Company will not receive any proceeds from the Sell-down,” the press release said.

“The company intends to mainly use the proceeds from the share issue to increase the company’s financial flexibility for new acquisitions,” Sinch added.

“The Selling Shareholders in the Sell-down are Cantaloupe AB (owned by co-founders Robert Gerstmann, Henrik Sandell, Kristian Männik, and Björn Zethraeus); Salvis Investment Limited (owned by co-founder Johan Hedberg); Erik Fröberg; as well as Neqst D1 AB,” Sinch said.

Sinch added: “In connection with the Sell-down, Cantaloupe AB’s and Neqst D1 AB’s ownership will be consolidated in Neqst D2 AB, which, following such consolidation, will hold approximately 17 percent of the shares and votes in the Company and become the largest shareholding entity of Sinch after the Share Issue and the Sell-down. This enables a long-term ownership in Sinch.”

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