Elliott Management has rebuilt a stake worth over $2 billion in SoftBank Group (9984.T) and is advocating for a $15 billion share buyback, according to a report by the Financial Times on Wednesday. Over the past two to three months, the activist investor has engaged directly with SoftBank’s senior management to discuss the proposal. Elliott believes that a share buyback would immediately boost SoftBank’s share price and demonstrate CEO Masayoshi Son’s confidence in his strategy.
This isn’t Elliott’s first engagement with SoftBank; in 2020, the firm acquired a $3 billion stake to push for a $20 billion buyback, which led to SoftBank’s plan to repurchase about 15% of its shares for roughly 1 trillion yen ($6.42 billion) in 2022. Elliott’s renewed interest in SoftBank aligns with its broader strategy of acquiring stakes in major Japanese firms, including Toshiba Corp, Sumitomo Corp, and Dai Nippon Printing. Following the news, SoftBank’s share price rose above 9,500 yen, marking its highest level in three years. Both SoftBank and Elliott Management have declined to comment on the report.