Yahoo Finance SoftBank closes at three-year high after FT reports Elliott has rebuilt stake
Investing.com -- Tokyo-listed shares in SoftBank Group Corp. (TYO:9984) closed at a three-year high on Wednesday after the Financial Times reported that Elliott Management had rebuilt its stake in the Japanese technology investment giant.
Elliott's holdings are now worth over $2 billion and its management has also been engaging directly with SoftBank's senior executives in the past two to three months, the paper said, citing people familiar with the matter.
The FT added that the U.S.-based activist fund is also pushing SoftBank founder Masayoshi Son to unveil a $15 billion stock buyback plan. Elliott believes that the move would help bolster SoftBank's share price and serve as a signal of Son's confidence in his current growth strategy.
Elliott had previously taken a $2.5 billion stake in SoftBank in 2020, and pushed at the time for a $20 billion repurchase program and a revamp to its corporate governance, according to the FT. However, the hedge fund almost completely sold off the stake by early 2022 due to concerns over a sharp fall in tech valuations, the paper said.
SoftBank shares have surged by more than 50% this year, fueled in part by optimism around Son's plan to focus growth around a 90% interest in U.K. chip designer Arm. But its market capitalization stands at around $90 billion, well below the net value of its assets, which have been pushed up to a record high of $180 billion thanks to a sharp increase in Arm's stock market price.
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