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Softbank to sell $41 billion in assets, planning to buy back 45%...
23 Mar 2020

Japanese tech group SoftBank’s stock rose after the announcement of the company’s plan to sell $41 billion worth of assets, to buy back shares and shore up its finances. 

The plan involves selling or liquidating up to 4.5 trillion Japanese yen ($41 billion) worth of holdings, which will help it repurchase up to 2 trillion Japanese yen ($18 billion) in stock.

According to Softbank, the remaining funds will be used to pay off debt, buy back bonds, and improve cash flow, and the transactions would take place over the next year.

However, Softbank did not specify which assets were being considered for sale, and their spokesperson declined to comment on the matter.

Earlier this month, the group promised to enhance shareholder returns and announced plans to buy back up to 500 billion Japanese yen ($4.5 billion) in stock. Taken together with the new measures, it now plans to buy back 45% of shares.

While the coronavirus pandemic has shaken investors everywhere, SoftBank has cratered more than 30% since the start of the year. Anyhow, Softbank is convinced that its shares are substantially undervalued

 

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