SoftBank is not “SoftPunku,” says the CEO to defend his strategy By Reuters

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© Reuters. PHOTO FOLDER: A journalist raises his hand to ask a question to the director-general of SoftBank Group Corp in Japan, Masayoshi Son, during a press conference in Tokyo

By Sam Nussey

TOKYO (Reuters) – The chief executive officer of SoftBank Group Corp (T ? Masayoshi His defended Thursday its investment decisions, claiming that the value of the assets in a conglomerate in japan has recovered to its level before the outbreak of coronavirus.

“We have worried a lot of people who thought that SoftBank is completed or is “SoftPunku” “, has declared at a meeting of shareholders, using a play on the word “puncture” is used colloquially in japanese when something is broken.

The increase in the value of the company is due to the growth of the participation of SoftBank is the chinese giant of e-commerce Alibaba Group Holding Ltd (N ? and following the merger of its wireless unit american Sprint with T-Mobile US Inc (O :).

Sprint, that His was in debt and had attempted several times to merge with T-Mobile before to conclude the agreement successfully in April, has delivered an internal rate of return of 25%, said Its.

SoftBank has undertaken a complicated transaction to dispose of a part of its stake in T-Mobile to raise $ 20 billion. This brings the total to a program of sale of assets, which includes the monetization of investments in Alibaba and the wireless operator SoftBank Corp (T :), to $ 35 billion, or 80% of the planned total, said His.

These funds are allocated to the redemption of shares and to increase the financial flexibility of SoftBank after the group suffered an annual loss record during the fiscal year ended in march, the technology investments of Its weakened.

The program record of share buyback of 2.5 trillion yen ($23 billion) is a way to increase the value for shareholders, which should temper the expectations around dividends, said Its.

Its said that he had reduced his compensation to the result of the poor financial performance, but defended the high salary of executives such as Rajeev Misra, head of the Funds Vision of $ 100 billion of SoftBank, which recorded an operating loss of 1.8 trillion yen.

Other japanese companies should review their compensation systems to reward risk-taking, said His.

“What are you afraid of?” he said during a presentation.

The shareholder meeting saw the appointment of new directors, including the contractor’s Lip-Bu Tan, elected against the opposition of the representative Glass Lewis.

Its also said that he was leaving the board of directors of Alibaba, after the departure of co-founder of Alibaba, Jack Ma, the board of directors of SoftBank.

(This story refile to add the “billion” lost to the eighth paragraph)

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