Business Today
Loading...
Softbank Corp to sell upto $41 billion to expand share buyback, reduce debt

SoftBank's share price extended early gains on Monday, jumping 19 percent following the announcement of the asset sales

Softbank Corp to sell upto $41 billion to expand share buyback, reduce debt

SoftBank Group Corp said on Monday it is selling up to 4.5 trillion yen ($41 billion) in assets to buy back another 2 trillion yen of its shares and reduce debt.

The share buyback, which will be the Japanese tech conglomerate's biggest ever repurchase, will be in addition to the up to 500 billion yen buyback announced earlier this month and comes amid pressure from activist hedge fund Elliott Management to improve shareholder returns.

The move comes as SoftBank's share price has been hammered by investor scepticism over the outlook for CEO Masayoshi Son's bets on startups like WeWork and Uber.

SoftBank's share price extended early gains on Monday, jumping 19 percent following the announcement of the asset sales, which will be executed over the next four quarters. SoftBank did not specify what would be sold.

Also read: COVID-19: FMCG majors Amul, Godrej, ITC hike output up to 20% as anxiety buying spikes

Also read: Coronavirus-hit India Inc stares at pay-cuts, late increments

Get latest news & live updates on the go on your phone with our News App. Download The Business Today news app on your device
More from BIZ WRAP