Softbank will invest $5 billion to buy back up to 6.7percent of the shares Ma Yun will resign as a director

 Softbank will invest $5 billion to buy back up to 6.7percent of the shares Ma Yun will resign as a director

In addition, Softbank will double its share buyback. In a statement, the company said it plans to buy back 500 billion yen ($4.7 billion) worth of Softbank shares by March 2021. The number of shares to be repurchased will reach 135 million, accounting for about 6.7% of the total number of soft banks publicly issued shares. Thats double the number of repos announced by the company in mid March.

The buyback is aimed at boosting Softbanks share price. Softbank said it expects a record operating loss of y1.35tn for the fiscal year ended March 31. On Monday afternoon, the company will report results. In recent years, Softbank has made the boldest investment in a series of start-ups. However, the investment benefit is not good. Its equity investment in companies such as Wework, oyohotels and Uber has now seen significant impairment.

Softbank said on Friday that it had repurchased 250.6 billion yen of Softbank shares since March 13, about half of its planned share buyback budget of 500 billion yen of its own companies by March next year. In a statement on Friday, Softbank said it had repurchased 58.6484 million Softbank shares as of April 30, about 40% of the 145 million shares it planned to repurchase.

The buyback plan announced by Softbank in mid March this year initially failed to boost Softbanks share price, because investors are worried that the group of start-ups invested by Softbank is particularly vulnerable to the impact of the new crown epidemic.

Softbank initially announced plans to buy back shares and reduce debt by selling assets for y4.5 trillion. Since then, Softbanks share price has risen nearly 70%.

Vision fund, a technology investment institution under Softbank, has made losses One point eight Trillion yen, half of Softbanks profit in the previous year came from the vision fund. Softbanks overall net loss is likely to reach y900 billion. (Tianmen Mountain)

Relevant recommendations are affected by the investment of Wework, which may drag down Softbanks annual net loss or reach US $8.4 billion, a huge loss of 88.4 billion a year. Is the position of Japans richest man still stable? Sun Zhengyis recent very hurt Softbank is expected to lose $12.5 billion in fy2019. Source: CFA editor in charge: Wang Fengzhi