SoftBank’s cheap valuation draws $1 billion bet from U.S. fund Tiger Global: Reuters
Summary
U.S. hedge fund Tiger Global has built a stake worth over $1 billion in SoftBank Group Corp as it considers the Japanese firm undervalued, a source with direct knowledge of the matter said, driving SoftBank shares up as much as 6.8 percent.The company’s charismatic CEO Masayoshi Son, who owns 21 percent of SoftBank, said at a shareholders’ meeting last month, that a “conglomerate discount” was weighing on the company’s stock.Sentiment toward the stock has risen recently after the company applied for the listing of its telecom unit and said it was increasing its stake in Yahoo Japan through an indirect deal that will deepen its ties with the internet heavyweight ahead of the IPO.SoftBank hopes the listing will clarify the distinction between its domestic telecoms operations and investing activities and help chip away at its discounted valuation.“We continue to believe the market significantly undervalues our stock and we welcome the support from a sophisticated institutional investor like Tiger Global,” SoftBank said in an email to Reuters on Thursday.