EbeneNews – CA – SoftBank hits 20-year high as investors take a defensive stance

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    (Bloomberg) – SoftBank Group Corp shares hit a new 20-year high as investors rally to founder Masayoshi Son’s more cautious strategy of selling assets, reducing debt and to buy back shares

    Shares of the Tokyo-based company gained more than 3% to 7,244 yen, the highest level since March 2000 amid the dot-com boom The stock had already reached several two-decade highs in the second semester of this year after a record fall in March with the coronavirus pandemic

    Long known for his extravagant spending on acquisitions and investments, Son turned the tide this year after the Covid-19 epidemic and management missteps He unveiled plans to sell 45 trillion yen (43 billion dollars) of assets and buy back a record 25 trillion yen from its own stock Stocks are up more than 160% from their March lows

    “This is a major turning point for SoftBank,” said Naoki Fujiwara, chief fund manager at Shinkin Asset Management Co “They have turned the tide of the offensive in defense, highlighting the value of their assets « 

    By the end of June, Son had offloaded $ 13.7 billion from Alibaba Group Holding Ltd stock, an even larger share of its stake in T-Mobile US Inc, and some shares of SoftBank Corp, the Japanese subsidiary of telecommunications He then announced the sale of chip designer Arm Ltd to Nvidia Corp for around $ 40 billion and sold an additional portion of SoftBank Corp for more than $ 10 billion

    During a conference call in August, Son said the fallout from Covid-19 persuaded him to pull out SoftBank would cash in some of its holdings to prepare for a prolonged downturn or new opportunities

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    « Defense is something that is always necessary to fight and always a very important part of fighting, » Son said at the time. « Cash is actually the defense for us »

    Son has agreed to sell far more assets than he originally planned, fueling speculation he’s gearing up for a big deal He has been considering shutting down private SoftBank for years, although ‘such a buyout would be much larger than any previous effort

    SoftBank used the capital to trade billions of dollars in stock options, a controversial move that briefly hurt its stock.The company is also considering its first special purpose acquisition company, or SPAC

    Son said he is repositioning SoftBank as an investment firm, de-emphasizing the operations of telecom and tech companies as it has done in the past

    “SoftBank is raising huge sums of money through asset sales,” said Fujiwara “They will present a new growth strategy in the near future”

    SoftBank Group, Investor, Masayoshi Son, Stock

    EbeneNews – CA – SoftBank Reaches Highest Level in 20 Years as Investors Take Defensive Stance



    SOURCE: https://www.w24news.com/news/ebenenews-ca-softbank-hits-20-year-high-as-investors-take-a-defensive-stance/?remotepost=438037

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