31.1 C
New Delhi
Tuesday, November 5, 2024
HomeTechSoftBank sells entire stake in troubled cloud firm Sinch

SoftBank sells entire stake in troubled cloud firm Sinch


Japanese investor SoftBank Group Corp has sold its entire stake in Sinch AB following a share price collapse of more than 90% in the Swedish cloud-based platform provider.


The Swedish company has fallen 93% from a peak in September last year following a string of disappointing earnings reports. The stock is also among the most shorted in Europe.

That’s a complete reversal from 2020 when Sinch was lauded as the best performing equity in Europe as virus-related lockdowns fueled demand for its messaging services and investors cheered the company’s aggressive pace of acquisitions.

But even then there were warnings. In June of that year, a financial adviser with Soderberg & Partners said that Sinch’s “growth journey must continue, or there is a great risk that the stock will end up at the other end of the chart.”

Softbank, which acquired a tenth of Sinch in November 2020, is selling its remaining stake of 5% to Sinch’s co-founder and interim Chief Executive Officer Johan Hedberg and Neqst D2 AB, a firm connected to the company’s Chairman Erik Froberg.

Shares rose as much as 24% in Stockholm on Friday, the biggest gain since February last year. The fact that the stake was bought by Sinch’s largest shareholder and the firm’s co-founder could partially offset the potentially negative aspect of the Softbank sale, Morgan Stanley said in a note.

Discover the stories of your interest

Stay on top of technology and startup news that matters. Subscribe to our daily newsletter for the latest and must-read tech news, delivered straight to your inbox.



Source link

- Advertisment -

YOU MAY ALSO LIKE..

Our Archieves