SoftBank Corp completes 100 billion yen share buyback, boosts stock price and investor confidence
SoftBank Corp, the Japanese telecom and internet subsidiary of SoftBank Group, announced on Monday that it has completed its 100 billion yen ($906 million) share buyback program, which was launched in May 2023. The company said it has acquired 56.3 million shares, or 1.19% of its total outstanding shares, through market purchases on the Tokyo Stock Exchange.
The share buyback program was part of SoftBank Group’s record 2.5 trillion yen ($22.7 billion) buyback plan, which aimed to boost its stock price and reduce the gap between its market value and the value of its assets. SoftBank Group, led by billionaire founder Masayoshi Son, has been hit by the slump in the value of its portfolio companies, especially in China, where a regulatory crackdown on tech firms has eroded its investments.
SoftBank Corp, however, has been relatively resilient amid the market turmoil, as it benefits from its stable and profitable core businesses of mobile and broadband services, as well as its growth initiatives in areas such as AI, IoT, and digital transformation. The company reported a 15.8% increase in its operating profit for the second quarter of 2024, beating analysts’ expectations.
The completion of the share buyback program has also boosted the confidence of the investors in SoftBank Corp, as it shows its commitment to enhancing shareholder returns and improving its capital efficiency. The company’s stock price rose by 2.4% on Monday, outperforming the broader market. The company also said it will continue to consider further measures to increase its corporate value and meet the expectations of its shareholders.
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