OREANDA-NEWS. SoftBank Corp. announces that the Company has reached an agreement on the capital and business alliance with Yamada Denki Co., Ltd. today as follows.

The Company will underwrite capital increase by third-party allotment of treasury stock disposed by Yamada Denki. Total shares to be underwritten will be 48,324,400 treasury stock (ownership ratio: 5.00%) at JPY 471 per share, amounting to JPY 22,761 million in total.

Yamada Denki, the leading company in the home electrical appliances industry and the Company have worked to create and develop a new market through the long-standing business relationship, beginning with sale of PC software, to sale of high-speed Internet connection services via ADSL and optical fiber, as well as sale of mobile communications services and mobile devices and accessories.

However, due to a high penetration of telecommunications services with 155.12 million domestic mobile communications subscribers in addition to changes of domestic economic structure evoked by demographic changes such as population aging and decline, it is expected that the future growth of domestic telecommunications service market will be more moderate than before.

Under such a circumstance, the Company has decided to enter into the Capital and Business Alliance with Yamada Denki to steadily develop its domestic business, aiming to 1) leverage Yamada Denki's nationwide sales channels and further enhance sales force for mobile communications services, mobile devices and accessories, and high-speed Internet connection services among others and 2) create a new market using ICT by combining the Group's businesses - telecommunications, renewable energy, and robotics - and smart house business of Yamada Denki. The Company believes that owning the shares of Yamada Denki will contribute to the stronger relationship with Yamada Denki than ever, and swiftly bring about a fruitful result.