Softbank triples spending on share buybacks in June to £1.4bn
Japanese investment giant Softbank has ramped up share buybacks this month, more than tripling its purchases month on month.
Filings released today showed Softbank has spent ¥188.3bn (£1.4bn) on buying back shares between 1 June and 15 June, compared to ¥61bn for the entire month of May.
The acceleration takes the total amount spent by Softbank on share buybacks to ¥499.9bn — or £3.7bn — since March.
The buybacks are funded by asset sales intended to raise up to $41bn (£33bn) as chief executive Masayoshi Son takes measures to stabilise the group.
Softbank reported a ¥1.4 trillion operating loss in the year to 31 March, as the impact of a series of soured tech bets took its toll. It had reported a profit of $19.6bn the previous year.
However its shares have risen in recent weeks, almost doubling from the four-year low they reached following its results.
The filing comes amid a storm brewing around its star Vision Fund, which has reportedly been caught up in a circular funding plot with Credit Suisse.
Softbank is said to have invested more than $500m in Credit Suisse investment funds, which in turn made large bets on startups backed by the Vision Fund, according to the Financial Times.
The Vision Fund is known for its standout investments in the likes of Wework and Uber, the difficult stock market listings of which forced Softbank to take an $18bn hit earlier this year.