In race for pole position, Volkswagen says vehicle sales up 4.3% in 2017

Volkswagen sold 10.7 million vehicles in 2017, 4.3 percent higher than the previous year, helped by strong gains in China, Europe and South America. (Reuters)
Updated 17 January 2018
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In race for pole position, Volkswagen says vehicle sales up 4.3% in 2017

FRANKFURT: Volkswagen (VW) reported a 4.3 percent rise in 2017 sales to 10.7 million vehicles, staying ahead of Toyota in the race to keep the title of world’s biggest carmaker although Renault-Nissan has forecast it would go top.
Last year’s sales by the German firm, which is still dealing with fallout from a scandal over rigged diesel emissions tests, were its highest ever, helped by strong gains in China, Europe and South America. Monthly sales in December rose 8.5 percent.
Japan’s Toyota Motor Corp. said last month it expected 2017 sales to grow 2 percent to 10.35 million units worldwide across its Toyota, Lexus, Daihatsu and Hino brands. It said it would hit 10.50 million vehicles in 2018.
The Renault-Nissan alliance, which includes Mitsubishi Motors Corp, has yet to release combined sales volume figures but Renault boss Carlos Ghosn said in July it was headed for the top spot.
In 2016, VW was No. 1 with 10.3 million vehicle sales, Toyota was second with 10.2 million and Renault-Nissan was third with 9.96 million.
VW said December 2017 China sales jumped 17.8 percent to 460,100 vehicles, while monthly sales in Europe rose 3.1 percent, driven by Germany. US sales were down 5.2 percent.
Overall, carmakers saw European sales fall 4.8 percent in December from the same month a year ago due in part to one less working day, industry data showed on Wednesday.
VW has set aside about €25 billion to cover fines, lawsuits and vehicle repairs related to the diesel scandal.


SoftBank mobile unit to go for $21bn IPO

Updated 13 November 2018
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SoftBank mobile unit to go for $21bn IPO

  • The IPO will be one of the biggest ever worldwide, and will provide the group with funds to pay down debt and continue placing big bets on innovations
  • SoftBank’s bets so far have been as varied as small gaming startups, ride-hailing firms such as Uber Technologies, and e-commerce behemoth Alibaba Group Holding

TOKYO: SoftBank Group Corp. has won approval to conduct a 2.4 trillion yen ($21.04 billion) initial public offering (IPO) of its domestic telecoms business, in a deal that will seal the group’s transformation into a top global technology investor.
The IPO will be one of the biggest ever worldwide, and will provide the group with funds to pay down debt and continue placing big bets on innovations that CEO Masayoshi Son predicts will drive future tech trends.
SoftBank’s bets so far have been as varied as small gaming startups, ride-hailing firms such as Uber Technologies, and e-commerce behemoth Alibaba Group Holding.
SoftBank Group aims to raise 2.4 trillion yen through the sale of 1.6 billion SoftBank Corp. shares at an tentative price of 1,500 yen each, a filing with the Ministry of Finance showed on Monday.

 

 The amount could rise by 240.6 billion yen if demand triggers an overallotment, taking the total closer to the $25 billion that Alibaba raised in 2014 in the biggest-ever IPO.
The final IPO price will be determined on Dec. 10, and SoftBank Corp. will list on the Tokyo Stock Exchange on Dec. 19 with an initial market value of 7.18 trillion yen — about 1 trillion yen above that of rival KDDI Corp, which has about 10 million more subscribers.
The parent will retain a stake of around two-thirds, depending on the overallotment.
The mammoth offering comes at a time when investors have begun questioning the outlook for Japan’s telecoms companies.
The IPO was initially expected to appeal to investors seeking stability, but the government has recently called on carriers to lower fees while backing more wireless competition, sending shockwaves through the industry.
Yet SoftBank’s brand is still likely to draw retail investors long accustomed to using SoftBank’s phone and Internet services. Many still see CEO Son as a tech visionary who brought Apple’s iPhone to Japan.
Japanese households are commonly seen as an attractive target in IPOs with their 1,829 trillion yen in financial assets, even if they are traditionally risk-averse with over 50 percent of assets in cash and deposits. More than 80 percent of the shares will be offered to domestic retail investors, a person with knowledge of the matter told Reuters.
“I think a reasonable amount of money will be attracted to this one,” said Tetsutaro Abe, an equity research analyst at Aizawa Securities. “It’s a mobile company, so the cash flow is steady.”

FACTOID

SoftBank to sell 1.6 billion shares at a tentative price of 1,500 yen ($13) each.