Japanese conglomerate SoftBank Group Corp. is seeking loans from Wall Street banks ahead of its telecom unit SoftBank Corp.'s initial public offering, Bloomberg News reported, citing people familiar with the matter.
The company has reportedly told potential underwriters seeking a role in the IPO, to lend to other units of the parent company, in a bid to access additional capital.
According to one person, the company is weighing the possibility of using its stake in U.K.-based computer chip designer ARM Holdings PLC as collateral in lieu of a combined loan of US$8 billion from banks. No final decision has been reached yet on the loan structure.
SoftBank Spokesman Takeaki Nukii however, dismissed the report saying "there is no truth to this."
SoftBank is eyeing a US$90 billion valuation for its domestic telecom unit and is looking to sell about $30 billion, or a third, of SoftBank Corp. in the largest IPO ever.
The planned public listing is expected to top that of e-commerce giant Alibaba Group Holding Ltd. in September 2014, which raised about US$25.03 billion in gross proceeds.