SoftBank Group Corp shares jumped 17 percent on Thursday, adding $14 billion to the Japanese tech investment giant's market value, after it unveiled a record share buyback and strong quarterly operating profit.
SoftBank said after the market closed on Wednesday it would repurchase up to 600 billion yen ($5.46 billion) of its stock, funded by the proceeds of the December IPO of SoftBank Corp.
The company also announced a 60 percent jump in third-quarter operating profit, lifted by rising valuations of its growing technology investments.
It said it sold its stake in chipmaker Nvidia, which has been hit by weak demand for gaming chips in China, offsetting most of the recent fall in that company's stock price through derivatives contracts.
SoftBank's market value is currently around 11 trillion yen ($100.10 billion). According to Son, SoftBank has also 21 trillion yen net of debt. That includes a 12.5 trillion yen stake in Alibaba Group Holding Ltd., 2.4 trillion yen telecoms unit, 2.6 trillion yen U.S. carrier Sprint Corp., 2.7 trillion yen each in the Vision Fund and chipmaker Arm Holdings Plc., and 600 billion yen in Yahoo Japan Corp.
Most of SoftBank’s assets are in mature companies like Alibaba, Sprint and Yahoo Japan. That’s why Son has been focusing more on the $100 billion Vision Fund and its portfolio of private companies that includes the world’s biggest ride-hailing company Uber Technologies Inc., Didi, Slack and co-working giant WeWork Cos.