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SoftBank founder Masayoshi Son has promised a ¥ 1tn ($ 8.8bn) segment re-purchase program in the next 12 months, agreeing. pressure from the Investor the company’s Vision Fund team revealed that the quarterly loss was ¥ 825.1bn.
The market’s prospect in the new stock exchange was rising with some of the company’s largest shareholders, including activist hedge fund Elliott Management, disappointed by the price targeting of Japanese technology conglomerate companies.
The first Vision Fund, a Saudi $ 100bn-backed SoftBank vehicle, has been hit hard by the fact that its public exports to China have been hit by a political crisis with some major bets, such as the South Korean ecommerce group Coupang, failing.
Despite the difficulties, Son said he had helped boost Vision Fund’s investment, which gave 15 percent of its $ 33bn to China by the end of September.
For the quarter of July to September, SoftBank also reported a loss of ¥ 397.9bn compared to a profit of ¥ 627.5bn in the same period a year earlier, as profits from its home telecommunications business helped reduce losses for the Vision Fund share.
In just 12 months, the price of all the goods in the group dropped from ¥ 27.9tn to ¥ 20.9tn, mainly due to violations by China’s ecommerce group Alibaba.
“We’re facing another hurricane,” Son told a news conference.
The quarterly loss of Vision Funds was even greater than the loss of ¥ 788.6bn reported by the group from January to March 2020, when SoftBank launched a $ 23 billion transaction program to end the market turmoil that caused its shares to collapse. strongly.
SoftBank shares rose in mid-March by ¥ 10,700, but down by 40 percent as the major stock exchanges neared the end.
Son said the agency would approve the new purchase on Monday, although he warned that the program would not reach its peak in the next 12 months.
“I believe the current stock price offers a great opportunity to buy. We will also save enough money to buy one,” said the billionaire founder, who owns one-third of the company.
A long-time investor at SoftBank asked how long the repayment of new shares would last. “Regular lending has become an easy way to manage long-term interest rates but it does not help long-term investors,” he said. “Over time, the price of a unit goes down and there is confusion with those who sell money to SoftBank about what it should be a price driver.”
Son added that Vision Funds’ space was growing exponentially, with 35% being donated to the US and 19% exported to China.
In the second fund of the Vision Fund, 9 per cent of its capital is allocated to India where the shareholder Ola and the Paytm payment group are planning to set up state start-ups.
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