Soft­Bank to re­pur­chase up to $4.4b of own shares

The Pak Banker - - COMPANIES/BOSS -

Ja­panese tele­coms con­glom­er­ate Soft­Bank Group on Mon­day an­nounced its big­gest ever buy­back in a bid to boost in­vestor con­fi­dence, say­ing it will pur­chase up to 500 bil­lion yen ($4.4 bil­lion) worth or as much as 14.2 per­cent of its own shares.

The stock has fallen over 37 per­cent yearon-year amid wor­ries about Soft­Bank's out­look, in­clud­ing the fu­ture of loss-mak­ing U.S. wire­less car­rier Sprint Corp (S.N), in which it has a ma­jor­ity stake.

The move fol­lows its buy­back of around $1 bil­lion worth of shares in Au­gust, which Chief Ex­ec­u­tive Of­fi­cer Masayoshi Son had said was partly in re­sponse to re­newed con­fi­dence in Sprint.

It also comes af­ter Soft­Bank last week re­ported a bet­ter-than-ex­pected 7.3 per­cent rise in third-quar­ter op­er­at­ing profit, as Sprint trimmed losses on sub­scriber gains and cost cuts. Naoki Yokota, an­a­lyst at SMBC Friend Re­search Cen­ter Ltd, said in­vestors will re­spond fa­vor­ably to the buy­back, which Soft­Bank has said will be car­ried out over a year start­ing on Wed­nes­day.

"Soft­Bank shares have be­come so cheap now. For the com­pany to say it's buy­ing back at this time will have an 'an­nounce­ment ef­fect'," he said, while adding that a full-fledged re­cov­ery still de­pended on a turn­around at Sprint.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.