Activist hedge fund firm Elliott Investment Management is pushing SoftBank Group to launch a $15bn share buyback programme after rebuilding a stake in the Japanese technology investor worth more than $2bn, according to a report by the Financial Times.
The report cites unnamed sources familiar with the matter as revealing that Elliott has engaged directly with senior management at SoftBank over the past two to three months.
According to the FT, Elliot’s view is that a share buyback indicates that SoftBank CEO Masayoshi Son has confidence in his investment strategy and provide an immediate boost to the company’s share price.
This is the second time Elliot has campaigned for a SoftBank share buyback, having previously done so in 2020, when it built a $3bn holding and pushed the company to buyback $20bn of its stock. It sold that stake after SoftBank announced plans to buy back about 15% of its shares for about JPY1tn ($6.42bn).
