TOKYO (Reuters) – Shares in wireless carrier SoftBank Corp (9434.T) fell 3% on Monday after parent SoftBank Group Corp (9984.T) 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 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.