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TOKYO: Japanese telecom SoftBank Corp<\/a>'s CEO Ken Miyauchi on Friday welcomed hedge fund Elliott Management<\/a>'s investment in parent SoftBank Group Corp saying the activist investor's assessment of the stock as undervalued was \"positive\".
Elliott has built up a roughly 3% stake in the tech conglomerate and is pushing for changes to boost its value including strengthening corporate governance and share buybacks, sources said.
Elliott \"thinks the company valuation is too low so in that sense it is currently a positive for SoftBank Group,\" Miyauchi said, adding he believed corporate governance at the telco he heads was already strong.
SoftBank Group's shares, which company executives think are chronically undervalued, closed up 7% on Friday after reports of the Elliott investment.
The comments came as SoftBank Corp reported a 15% rise in third-quarter operating profit, beating estimates, underpinned by its mobile business.
The company also raised its full-year operating profit forecast to 900 billion yen ($8.2 billion) from 890 billion yen previously.
Operating profit in the October-December quarter was 243 billion yen versus 211 billion yen a year earlier. That compared with an average forecast of 240 billion yen from three analyst estimates compiled by Refinitiv.
Japan's third-largest telecom, SoftBank Corp has pledged to pay out 85% of its net income as dividends, providing a steady stream of cash to parent SoftBank Group, which holds a 67% stake. As such, SoftBank Corp has become a popular stock for yield-hungry Japanese retail investors.
Miyauchi said dividends, rather than share buybacks, are the priority.
Along with a 26% stake in China's Alibaba, the wireless carrier continues to help to support the market value of its parent, which in the quarter ended September reported its first quarterly loss in 14 years as its tech bets faltered.
Founder Masayoshi Son built his fortune by breaking into Japan's telecoms market but his reputation could be determined by the performance of the $100 billion Vision Fund, which will report at the group's results on Wednesday.
SoftBank Corp rivals NTT Docomo and KDDI Corp reported last week that operating profit fell 15% and rose 11%, respectively.
SoftBank's stable earnings contrast with the fortunes of one of Son's big early overseas bets, U.S wireless unit Sprint Corp<\/a>, which last week reported falling subscriber numbers.
Analysts said prospects for the money-losing company are grim if it does not reach a merger with larger rival T-Mobile US<\/a> Inc.
Japan's three incumbent telecoms are holding their breath for the announcement of pricing plans from Rakuten Inc, which will launch wireless services in April and is expected to offer aggressively low prices.
SoftBank Corp's shares closed up around 1% ahead of the earnings release.
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日本软银电信集团首席执行官认为艾略特投资"正面"
日本软银电信集团的首席执行官Ken Miyauchi周五欢迎对冲基金埃利奥特管理在软银集团母公司的投资说维权投资者评估股票被低估的是“积极的”。
东京:日本电信软银集团周五的首席执行官Ken Miyauchi欢迎对冲基金艾略特的管理在父软银投资集团说维权投资者评估股票被低估的是“积极的”。
艾略特已经建立了科技集团约3%的股份,并推动变化来提高它的价值包括加强公司治理和股票回购,消息人士说。
艾略特认为,公司估值太低,所以从这个意义上讲目前软银的正面,“Miyauchi说,他认为公司治理在电信他已经强大了。
软银集团的股份,公司高管认为这是长期被低估,周五收盘上涨7%后,艾略特的投资报告。
发表上述言论之际,软银公司公布第三季度营运利润增长15%,超出预期,支撑其移动业务。
该公司还上调了全年营业利润预估上调至9000亿日圆(合82亿美元)从8900亿日元。
在去年第四季度营业利润2430亿日元和2110亿日元。相比之下,平均预估的2400亿日元从三个分析师预估Refinitiv编制。
日本第三大电信,软银集团已承诺支付其85%的净利润作为股息,提供一个稳定的现金流,父软银集团持有其67%的股份。因此,软银集团已经成为一个流行的日本散户投资者追求高收益率的股票。
Miyauchi说股息,而不是股票回购,是优先考虑的事情。
随着中国阿里巴巴26%的股份,无线运营商继续帮助支持母公司的市场价值,而在截至9月份的季度报告14年来首次出现季度亏损为科技投资摇摇欲坠。
创始人孙正义靠闯入日本电信市场,但他的声誉可能是由视觉1000亿美元基金的表现,将于周三报告在集团的业绩。
软银集团竞争对手NTT Docomo和KDDI Corp .)上周报道,营业利润下降15%,上升了11%,分别。
软银稳定收益与儿子的一个大的财富早期海外投资,U。无线部门Sprint公司上周报道,用户数量下降。
分析师称,亏损的公司前景堪忧,如果它不与规模更大的竞争对手合并t - mobile美国公司。
日本的三个电信屏住了呼吸乐天公司的定价计划的宣布,将于4月发射无线服务,预计将提供积极的低价格。
软银集团股价收盘上涨1%左右的收益。
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