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Monday, September 20, 2021

Softbank Buys 10 Percent Stake in Sinch

Softbank-owned SB Management bought a 10.1 percent stake in Swedish cloud computing services provider Sinch on Tuesday morning, acquiring stakes from some major shareholders and participating in a directed share issue.

Softbank-owned SB Management bought a 10.1 percent stake in Swedish cloud computing services provider Sinch on Tuesday morning, acquiring stakes from some major shareholders and participating in a directed share issue.

In a statement, Sinch said it had issued 3.2 million new shares at a 6.6 percent discount to Tuesday’s opening price, raising about $386 million for the company. “The company intends to mainly use the proceeds from the share issue to increase the company’s financial flexibility for new acquisitions,” Sinch said.

The company, which has a scalable platform for messaging, voice and video, pointed out that a fund managed by Softbank subsidiary SB Management had subscribed 1,200,000 shares in the issue.

Sinch also said in its Tuesday statement that some larger shareholders, including several co-founders, had also sold 5,200,000 existing shares to SB Management at $3 per share. The Swedish firm’s stock has surged nearly 300 percent this year.

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