The SoftBank Group Corp. of Japan had announced a $5.5 billion share buyback on Wednesday, the 6th of February to reimburse the share price, which its Chief Executive Officer had claimed to be undervalued. The news of buyback came forth, as the company posted a 60 percent raise in its quarterly operating profit on growing valuation of its technology investments.
According to the report revealed earlier on Wednesday, February the 6th, the havoc buyback of $5.5 billion would be funded by its bumper domestic telco’s IPO, meanwhile the founder and chief executive of SoftBank Group Corp., Masayoshi Son labelled the buyback as its largest ever, chiefly driven by an effort to offset a chronic undervaluation of the SoftBank’s share.
Following the announcement of buyback, the SoftBank’s share listed in Tokyo, rose over 0.55 percent to 8,462 Japanese Yen at Wednesday’s market closure. Last week, the telecom and tech conglomerate had said that they would be repurchasing 112 million shares worth of around 600 billion Japanese Yen or about 10.3 percent of its total outstanding shares excluding treasury stocks, over the next eleven months.
The Japanese tech con glomerate raised over 2.35 trillion Japanese Yen in last December, driven by a bumper IPO of its telco, which aided the SoftBank substantially to post a 24 percent jump in quarterly revenues. Lamenting on the SoftBank’s share price, CEO Son said in a post earnings briefing, “I think they’re too cheap”.