SoftBank reported a Q2 net loss of JPY 397.9bn ($3.5bn) compared to a profit of JPY 627.5bn ($5.6bn) during the same period last year. The losses were primarily due to the conglomerate’s Vision Fund unit reported a record quarterly loss of JPY 825.1bn ($7.3bn) after the value of its publicly listed portfolio companies plummeted due to the crackdown in Chinese tech companies including Didi that incurred an MTM loss till November 5 of $4.2bn.
SoftBank said that it would buyback a maximum of 250mn shares, i.e. 14.6% of its stock, totaling JPY 1tn ($8.8bn) in a share buyback program over the next 12 months. Founder and CEO Masayoshi Son said, “We had a heated discussion at the board meeting. We decided now is the time to buy back shares… I firmly believe the current share price presents a big buy opportunity. We will also preserve enough capital for investments… I am so excited, because I am a shareholder.” The buyback comes on the heels of the its previous buyback program worth JPY 2.5tn ($22.1bn) that helped the stock rebound from the pandemic’s lows. Son also said the company would diversify the location of its Vision Fund investments with a 35% allocation to the US and 19% to China.
SoftBank’s dollar bonds were stable with its 6% Perp at 100.1, yielding 5.94%.
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