SoftBank Group Planning to Spend 500 Billion Yen to Buy Back up to 7% of Stock
SoftBank Group Corp. plans to spend up to 500 billion yen ($4.8 billion) buying back as much as 7% of its shares, taking a step advocated by activist investor Elliott Management Corp. to boost stockholder value.
The buyback will run from March 16 through March 15, 2021, the company said in a statement Friday
SoftBank Group Corp. plans to spend up to 500 billion yen ($4.8 billion) buying back as much as 7% of its shares, taking a step advocated by activist investor Elliott Management Corp. to boost stockholder value.
The buyback will run from March 16 through March 15, 2021, the company said in a statement Friday. SoftBank shares fell despite the announcement, dropping as much as 9.2% along with the broad market decline.
Elliott took a stake of almost $3 billion in SoftBank, arguing the company’s shares are substantially undervalued compared with its assets. It has advocated for a share buyback of as much as $20 billion, along with governance changes and more transparency about its investments. A year ago, SoftBank unveiled a record buyback, sparking a rally that pushed shares to the highest since its dot-com peak in 2000.
Founder Masayoshi Son has also argued that his shares are undervalued. SoftBank has calculated the value of its shares may be more than double their current price.
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