SoftBank Group Corp (9984.T) shares jumped 10.5% on Tuesday. Japanese conglomerate said it would spend up to 1 trillion yen ($8.8 billion) buying back almost 15% of its shares. The company announced the buyback, long speculated about by the market, after it revealed its quarterly earnings crashed to a loss.

The buyback is SoftBank's second largest after a record 2.5 trillion yen buyback launched during the depths of the COVID-19 pandemic last year. Shares of the tech group quadrupled during that buyback, but have since fallen 40% from a peak in May. Tuesday's trading volume was more than twice the 30-day average.

SoftBank owns about a quarter of Alibaba's shares. The slide in the Chinese e-commerce giant's shares and the broader regulatory backlash in China contributed to a $57 billion fall in SoftBank's net assets to $187 billion. The repurchase period for the latest buyback runs to Nov. 8 next year.
Posted by CA carly
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