Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

SoftBank restarts buybacks as asset sales swell cash pile

Stock MarketsOct 14, 2020 05:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo, Japan 2/2

By Sam Nussey

TOKYO (Reuters) - SoftBank Group Corp (T:9984) resumed its share buybacks in September, after an enforced pause in August due to asset sales, saying on Wednesday it spent 40 billion yen ($380 million) of its growing cash pile.

This is in line with previous signalling of a slower pace of purchases from SoftBank, which spent 1 trillion yen on buybacks between March and early August after the gap between the value of its assets and market valuation reached record levels.

SoftBank's shares traded sideways during the lull in August ahead of deal news, which included the sale of chip designer Arm to Nvidia Corp (O:NVDA), but have since resumed their climb and closed near two decade highs on Wednesday.

In a sign of SoftBank's restored confidence, its Vision Fund plans to market a blank-check company to investors, a source told Reuters, as it joins a trend to offer private companies a quick route to public markets.

The size of the company has not been decided, the source said, but could include SoftBank cash. In July 2019 SoftBank said it had secured $108 billion in pledges for a successor to its $100 billion Vision Fund, before a string of soured bets undermined fundraising efforts.

A recovery at the first fund, which analysts say could trigger a broader reappraisal of the group's investing abilities, has yet to be seen, with its assets still underwater at the end of June.

Mitsunobu Tsuruo, a Citigroup (NYSE:C) analyst, forecasts SoftBank's earnings "at roughly breakeven" for the year ended March, while cautioning that it is "exceptionally hard for people outside the firm to establish a rational outlook for earnings".

Citigroup estimates SoftBank's asset sales have topped 9 trillion yen ($85 billion) in the last six months.

SoftBank restarts buybacks as asset sales swell cash pile
 

Related Articles

Ford wakes up badly burnt from its India dream
Ford wakes up badly burnt from its India dream By Reuters - Sep 17, 2021

By Aditi Shah NEW DELHI (Reuters) -When Ford Motor (NYSE:F) Co built its first factory in India in the mid-1990s, U.S. carmakers believed they were buying into a boom - the next...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email