SoftBank\'s Saudi ties in focus as CEO Son makes first appearance since journalist murder

SoftBank's Saudi ties in focus as CEO Son makes first appearance since journalist murder

Reuters  |  TOKYO 

By Sam Nussey

Presenting SoftBank's June-September earnings results, Son will also want to assuage concerns over the firm's domestic telecoms business ahead of its mammoth IPO - potentially the world's biggest - as the industry faces government pressure to cut prices.

While the results are expected to show solid profit and the Stock Exchange is reportedly set to approve the telecoms listing next week, Son will be in the rare position of seeking to reassure investors about his strategy.

Arabia is the largest investor in SoftBank's $93 billion Vision Fund, giving Son firepower to make big bets in such as shared office space provider and hotels. But against the backdrop of the murder case, that dependence is now seen as a risk to SoftBank's plans to raise further funds.

(Click for graphic of SoftBank's most profitable segments https://tmsnrt.rs/2RAwtfI)

Jamal Khashoggi, a critical of the Saudi state, was murdered early last month in the On Friday, Turkish said the order to kill Khashoggi came from the "highest levels" of the

Son and other global executives cancelled speaking engagements at the kingdom's investment conference in the weeks after the killing. Son is due to speak in at 0700 GMT.

For now there are few signs SoftBank's Saudi links are deterring startups from accepting capital, with company on Friday announcing a $1.1 billion investment from the fund, saying the deal will allow it to accelerate growth plans.

Still, worries about the Saudi fallout and a broader downturn in global have weighed on SoftBank shares in recent weeks. They closed on Friday at 8,699 yen, down almost 30 percent from September's high of 11,500 yen.

Another recent concern has been the initial public offering (IPO) of SoftBank's mobile phone network provider. Market participants said the offering could surpass the $25 billion worth of shares sold by China's in in 2014, which in turn beat the $22 billion raised by Ltd in Hong Kong in 2010.

(Click for a chart of the largest IPOs in and globally https://tmsnrt.rs/2NyR45I)

The IPO is widely expected to draw Japan's attracted to SoftBank's image as a successful tech company and the prospect of steady returns.

Yet it comes as the steady profit the industry has enjoyed has been brought into question.

Facing government calls to lower prices, said last week it will cut service charges by as much as 40 percent, affecting its earnings from the next fiscal year.

Separately, competition is set to increase as enters the mobile market in a year's time with the help of a tie-up with telco

(Reporting by Sam Nussey; Editing by Christopher Cushing)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, November 05 2018. 10:17 IST