SoftBank's share repurchase nearly $3bn despite May slowdown

Masayoshi Son, the CEO of Japanese multinational company, SoftBank Group
EJ
Emeh Joy

A company filing on Friday showed that SoftBank's share buybacks slowed in May even though total purchases to support share price since March reached $2.9bn (312bn yen).

The buybacks which are being funded by a major asset sale programme are part of a record up to 2.5 trillion yen undertaking by SoftBank, which spent 61 billion yen buying back its shares in May.

Kirk Broodry, an analyst at Redex Research said, "Market sentiment was strong for its underlying holdings so, SoftBank may have decided to keep some power dry".

Reports also have it that the company's Chief Executive, Masayoshi Son is making conscious efforts to stabilize the group which has taken a hit of underperformance at some of its biggest technology investments.

The group's earnings which were reported in May showed that its $100 billion Vision Fund reported a 1.9 trillion yen operating shortfall thus drawing SoftBank into a record full year loss.

Credit rating agencies have showed concern about the company's buybacks with S$P Global Ratings saying on Thursday that it puts SoftBank's financial rigour in question.

SoftBank's shares which have gained about 90% from their March low moments, closed down 2.2% on Friday.

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