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SoftBank Seeks to Close Valuation Gap With Share Buyback

  • Repurchase to be funded by blockbuster IPO of telecoms unit
  • Gains from operations, investments bolstered profits
Masayoshi Son, chairman and chief executive officer of SoftBank Group Corp.

Masayoshi Son, chairman and chief executive officer of SoftBank Group Corp.

Photographer: Kiyoshi Ota/Bloomberg
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SoftBank Group Corp. is buying back as much as 600 billion yen ($5.5 billion) of stock, as founder Masayoshi Son steps up efforts to close the disparity between what he thinks the company is worth and its market value.

Proceeds from the 2.4 trillion yen initial public offering of its telecommunications business in December will be used to fund the repurchase, the Tokyo-based company said Wednesday. It’s the biggest-ever buyback in SoftBank’s history, and the shares rose in late trading.