Elliott Management has rebuilt a stake worth more than $2 billion in SoftBank Group and is pushing the Japanese technology investor to launch a $15 billion share buyback, the Financial Times (FT) reported on Wednesday.
The activist investor has engaged directly with SoftBank’s senior management over the past two to three months, the report said, citing people familiar with the matter.
Elliot expects a share buyback would deliver an immediate boost to the share price and act as a sign of SoftBank CEO Masayoshi Son’s confidence in his strategy, the FT said.
In 2020, Elliott amassed a $3 billion stake in SoftBank and pushed for a $20 billion buyback of its stock and improved corporate governance.
SoftBank did embark on a buyback programme, but Elliott later sold off the remainder of its stake in 2022 after the value of the Japanese conglomerate’s portfolio was hit by a collapse in tech valuations.
Elliott has been active in Japan this year, building stakes in Japan’s biggest property group Mitsui Fudosan, and trading company Sumitomo Corp.
Previously, it had called for change at Dai Nippon Printing and scandal-hit Toshiba Corp.
SoftBank declined to comment on the FT report, while Elliott did not immediately respond to a Reuters request for comment.
Shares in SoftBank jumped more than 5%, before paring some gains to end the day up 4.6% at 9,420 yen, its highest in three years.
Reuters