SoftBank's human-like robot named "Pepper" performs to welcome as a concierge at an entrance of Mizuho Financial Group's Mizuho bank branch in Tokyo, Japan, July 17, 2015. [Photo/Agencies]

HANGZHOU - SoftBank announced Wednesday that it will sell a 4-percent stake in Alibaba Group, its first time selling shares in the Chinese e-commerce giant since it invested in 2000.

After the transaction, the Japanese telecom operator will remain Alibaba's biggest shareholder with 28 percent.

Alibaba announced that it has agreed to pay $2 billion in cash to buy back shares from SoftBank.

In addition, Alibaba founders and executives agreed to acquire $400 million worth of Alibaba shares at the same price.

According to SoftBank, it will sell Alibaba shares worth $500 million to a sovereign wealth fund.

It will also issue $5 billion in mandatory exchangeable trust securities exchangeable for Alibaba shares in three years.