SoftBank is launching an emergency ¥4.5tn ($41bn) asset sale to fund a share buyback and debt reduction, in a determined effort by Masayoshi Son to stem a collapse in the company’s share price sparked by the coronavirus crisis.
Shares in the Japanese technology group soared almost 19 per cent on Monday after it unveiled the programme, which includes a plan to repurchase ¥2tn of its own shares on top of the ¥500bn buyback it promised 10 days ago. Combined, SoftBank would be repurchasing 45 per cent of its stock.
“This programme will be the largest share buyback and will result in the largest increase in cash balance in the history of SBG [SoftBank Group], reflecting the firm and unwavering confidence we have in our business,” Mr Son, the group’s founder and chief executive, said in a statement.