Japan's Softbank has cancelled a deal to sell mobile unit eAccess to its 42.6% owned subsidiary Yahoo Japan.
In a market update, Softbank said the proposed transaction has been called off “as a result of in-depth discussions between the company and Yahoo Japan.”
Softbank still plans to merge its eAccess and WILLCOM brands from June 1 and change the name of the new company to Ymobile.
Following the discussions, Softbank and Yahoo Japan decided that it would be better if Ymobile took responsibility for infrastructure, while Yahoo Japan assumed responsibility for services.
As a result, Ymobile and Yahoo Japan will collaborate on offering services under the brand name of Y!mobile, but Ymobile the company will remain a separate entity.
Softbank had been forecasting it would book an accounting gain of around 55.7 billion yen ($549 million) on the sale of the subsidiary, and now this special income will not be received.
Softbank first announced its intention to sell eAccess to Yahoo Japan in March for 324 billion yen ($3.19 billion) as part of a restructuring exercise.