SoftBank takes drastic measures to cut debt
The company mulls a $17 billion share buyback to strengthen its balance sheet
Stocks impacted: SoftBank Group Corp. (9984)
SoftBank Group plans to sell or cash in up to 4.5 trillion yen ($41 billion) in assets to buy back shares and reduce debt over the coming year. The company said it’s authorized the sale or monetization over the next four quarters of its assets, including holdings in corporations like China’s Alibaba. As a reminder, S&P Global Ratings has cut its outlook on SoftBank to negative, citing the broad market declines and the conglomerate’s plans for a buyback. Last week, SoftBank Group said it could walk away from a significant part of its WeWork bailout program. Earlier this month, the company reported that it plans to spend up to 4.8 billion buying back as much as 7% of its shares. SoftBank stocks closes over 18% higher on Monday.
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