Japan's SoftBank announces $4.4bn share buyback

GMT 09:29 2016 Monday ,15 February

Arab Today, arab today Japan's SoftBank announces $4.4bn share buyback

Masayoshi Son, president of Japan's telecom and Internet group SoftBank Group
Tokyo - AFP

Japanese telecom giant Softbank said Monday it will buy back about 14 percent of its shares for more than $4.0 billion, after the stock plunged since the start of the year.

The company plans to buy 167 million shares over one year starting Tuesday at a total cost of around 500 billion yen ($4.4 billion), it said.

"The proposed share repurchase will be funded through proceeds from the sale of assets and cash on hand, but not through any debt procurement," the company said.

The buyback -- which tends to beef up a stock's value -- comes after SoftBank's Tokyo-listed shares dropped 28 percent since the start of the year amid wild volatility on global markets.

Last week, the company -- which owns a huge stable of firms including US-based mobile giant Sprint -- said its nine-month net profit was down by more than one-quarter from a year earlier.

The shares closed at 4,400 yen on Monday, rising nearly six percent on the back of a huge rally in Tokyo.

In August, Softbank president and former Google executive Nikesh Arora said he would buy a whopping $483 million in company shares to show confidence in SoftBank's prospects.


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