Home » today » News » Billionaire Masayoshi Son announced the sale of SoftBank assets for $ 41 billion and the repurchase of shares for $ 18 billion Editorial Material
Billionaire Masayoshi Son announced the sale of SoftBank assets for $ 41 billion and the repurchase of shares for $ 18 billion Editorial Material
The company wants to reduce its debt burden and demonstrate confidence in its business.
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Japanese billionaire Masayoshi Son plans to sell $ 41 billion of SoftBank assets during the year, buy back shares of $ 18 billion and reduce the company’s debt, the company said in a statement.
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In total, SoftBank has assets worth more than $ 245 billion and $ 15 billion in cash. The sale of which particular assets in question is not specified.
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This program will be the largest share buyback and will lead to the largest increase in the cash balance in SoftBank history, which reflects a firm and unshakable confidence in our business.
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Masayoshi Song
Chairman and CEO SBG
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The company believes that SBG shares are underestimated – by March 20, they were trading supposedly 73% less than their real value.
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Against the background of this news, the company’s shares rose 18.61% by 20:30 Moscow time to 3,187 Japanese yen or $ 28.59.
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Despite the growth, SoftBank shares are trading 40% below the peak value in February 2020, Bloomberg claims. Since the beginning of 2020, the company’s shares have fallen in price amid the spread of the coronavirusCovid-19.
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According to the publication, SoftBank is considered especially vulnerable to economic shocks, given the large debt burden and the connection with unprofitable startups around the world. Among the company’s assets are shares in the Chinese Alibaba Group, the British manufacturer of Arm chips, the Uber taxi ordering service, WeWork co-working network and others.
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The company may sell part of its stake in Alibaba – 26%, said Anthea Lai, an analyst at Bloomberg Intelligence. According to her, Alibaba accounts for about half the value of SoftBank’s net assets.
