SoftBank soars after unveiling $41 billion plan to slash debt

Tokyo: SoftBank Group plans to raise as much as $41 billion to buy back shares and reduce debt in an unprecedented move to restore investor confidence as a financial market rout pummels its shares and its portfolio companies.

The Japanese tech conglomerate’s plans come as it contends with a growing financial squeeze on the company and its $100 billion Vision Fund, which has recorded two consecutive quarters of losses after its tech bets fell short.

Its shares jumped 19% for their biggest daily gain in nearly 12 years after the pledge to sell or monetise up to 4.5 trillion yen ($41 billion) of assets to buy back 2 trillion yen of its shares in addition to a buyback of up to 500 billion yen announced earlier this month.


The buyback tops the $20 billion of purchases sought by activist investor Elliott Management, which has put pressure on Soft-Bank to improve shareholder returns, and will retire 45% of the group's shares.