SoftBank plans to buy back up to 4.5 trillion Yen ($41 billion) of its assets as it seeks to trim its huge debt burden. Masayoshi Son, the company’s founder, said the move reflected “the firm and unwavering confidence we have in our business.” The company said it will spend the remaining 2.5 trillion Yen on debt redemptions, bond buybacks and increasing its cash reserves.
The company said it believes its shares are undervalued by 73% to their “intrinsic value.” SoftBank Group Corp.’s share price jumped 18.6% on Monday to 3,187 yen ($28.87).
Son said the share purchases amount to less than one-fifth of the company’s total assets, while significantly reducing debt. The total 5 trillion yen ($45.5 billion) in shares that will be repurchased over a year’s time account for 45% of the company’s total shares and are to be retired.
The company has announced that it plans to improve its governance by asking an independent search company to find up to three candidates to become independent board members for approval at the company’s annual general stockholders meeting.
