SoftBank Group Corp (TYO: 9984), the Japanese internet and telecommunications company announced its decision to reorganize its core businesses (domestic and global operations) to drive growth.
Last month, the Board of Directors of SoftBank approved the repurchase of as much as 167,000,000 shares or 14.2% of its common stock with a maximum value of ¥500 billion.
The stock price of SoftBank declined almost 40% year-over-year before its stock buyback plan. The decline was primarily due to investors’ concern regarding the future of Sprint Corp. (NYSE:S), which the Japanese firm owns a majority stake.
SoftBank shares closed ¥5,754 each, down by 1.83% on Monday in Tokyo.
Details of the reorganization
According to the Japanese company, it would separate its domestic and global operations and each would have its own chief executive officer. SoftBank said the move was part of its previously announced strategic plan to boost shareholder value.
SoftBank Director Ken Miyauchi will serve as CEO of the company’s domestic operations, which include its stake in Yahoo Japan Corporation (TYO: 4689) and others.
Softbank President and COO and representative director will serve as CEO of the company’s global operations, which include its stake in Alibaba Group Holding Limited (NYSE:BABA) and Sprint.
SoftBank Chairman and CEO Masayoshi Son will remain the head of the overall operations of the company’s core businesses. The reorganization is expected to be completed by the end of this year, subject to the approval of regulators and shareholders as well as its compliance with relevant laws and regulations.