SoftBank offloading entire Brightstar stake

Japanese conglomerate SoftBank has announced its decision to sell all of its shares in Brightstar Global Group, a US wireless devices wholesaler.

Under the terms of the deal, the stock will be picked up by a newly-formed subsidiary of Brightstar Capital Partners.

The consideration will take the form of a cash payment for an undisclosed amount, as well as a 25.0 per cent stake in a newly-formed subsidiary of the buyer, which is being set up to hold all Brightstar Global Group stake.

SoftBank said it had decided to sell its holding in the target following a strategic review, noting that it will retain a minority stake in order to gain exposure to any future equity upside.

Completion remains subject to regulatory approvals, among other conditions, and is slated to close by the end of the fiscal year running to 31st March 2021.

Brightstar has a presence in some 38 countries across five continents and claims to account for one in every 23 devices sold worldwide.

The company processes some 80.00 million devices every year for a customer base spanning 57 countries.

There have been 205 deals worth a combined USD 8.23 billion targeting merchant wholesalers of household appliance and electrical and electronic goods announced worldwide during 2020 to date, compared to 2019’s 412 worth USD 4.10 billion, according to Zephyr, the M&A database published by Bureau van Dijk.

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Of 2020’s deals in the sector so far, the most valuable was worth USD 4.50 billion.

That transaction saw WESCO International pick up US electrical wire and cable wholesaler Anixter International in June.

No other deal targeting the industry has broken the USD 1.00 billion-barrier in the year to date; second place involved Luxshare Precision Industry injected USD 454.00 million into wholly-owned subsidiary ICT-Lanto in June.

© Zephus Ltd

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