Shares in telecom firm SoftBank Corp fall 3% as parent slashes stake
Reuters
Published Aug 30, 2020 09:02PM ET
Updated Aug 30, 2020 10:00PM ET
By Sam Nussey
TOKYO (Reuters) - Shares in wireless carrier SoftBank Corp (T:9434) fell 3% on Monday after parent SoftBank Group Corp (T:9984) said it would sell up to 22% of the telco's shares, which could slash its holding in the carrier to 40%.
SoftBank Group's shares were up almost 5% as a series of massive asset sales and share buybacks fuel its climb from March lows.
SoftBank Corp's shares were trading at 1,385 yen in Monday morning trade - below its December 2018 IPO price of 1,500 yen, as its CEO Ken Miyauchi struggles to excite investors about the long-term growth prospects for Japan's third-biggest carrier.
SoftBank Group "is manifesting a very disciplined approach to managing its balance sheet (in a welcome change) but does not bode so well for (SoftBank Corp's) shareholders," Jefferies (NYSE:JEF) analyst Atul Goyal wrote in a note.
Group CEO Masayoshi Son has already cut exposure to the telco he built despite its ample dividends as he bulks up cash reserves during the coronavirus outbreak.
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