Softbank Eyes Sale of Stake in Indian Renewable Energy Venture: Report

SoftBank Group Corp is in discussions to trade a majority stake in its renewable energy joint venture in India as it looks to raise cash after facing setbacks to its global investments, as per reports.

As part of the move, the Japanese technology and investment giant has been in talks with independent wealth and pension funds from the Far East and Gulf regions, as well as some Silicon Valley technology giants, the report believed, quoting people in the know of the matter.

The group is looking at a partner that can provide equity assurances of $1.5 billion to $2 billion to implement and complete a pipeline of 7 gigawatts of renewable projects around the world, the report said.

SoftBank is facing improved investor enquiry after it was forced to bail out one of its best known portfolio companies, the cash-burning, office-sharing firm WeWork, for about $10 billion last year.

This has put a limelight on founder Masayoshi Son's strategy of driving billions of dollars into unproven, money-losing startups at a time when it is getting clasped by a sell-off in many of its listed bets.

Its bailout effort for WeWork seemed to have complicated after talks to secure $3 billion from Japan's three biggest banks stalled, Reuters reported last month.

For its India renewable energy venture, SoftBank is bearing in mind options including a sale of its entire 70 per cent stake or a majority stake, as per reports. The unit is a joint venture with Bharti Enterprises and Foxconn Technology Group, and it won its first solar plant order in India in 2015.