SoftBank raises USD948.5m from stock buyback; share price rallies

13 Jul 2020

In a press release last Friday (10 July), Japan’s SoftBank Group Corp disclosed that it bought back JPY101.7 billion (USD948.5 million) worth of its common stock between 17 June and 30 June 2020 – pursuant to the JPY500 billion repurchase authorisation resolution made by the Board of Directors on 15 May 2020. The stock buyback – comprising more than 18.7 million shares – forms part of a massive capital reallocation programme announced by the tech investment group in March that includes offloading most of the group’s stake in wireless carrier T-Mobile US, a portion of its 26% stake in Alibaba Group, and some of its shares in its Japanese operating division SoftBank Corp.

Market watchers note the strategy appears to be working, with SoftBank’s share price moving higher in recent trading sessions. Nomura Securities analyst Daisaku Masuno was cited as saying: ’The stock price has continued to rise over the past two weeks, but we still reiterate our buy rating and believe that a large share repurchase will help reduce the price discount.’

Japan, SoftBank Corp, SoftBank Group Corp