leadf
logo-loader
viewT-Mobile US Inc

Sprint, T-Mobile rework merger terms

Deutsche Telekom will own 43% of new combined company, while SoftBank will hold a 24% stake

T-Mobile US Inc - Sprint, T-Mobile rework merger terms
T-Mobile’s parent, Deutsche Telekom, will get a better exchange ratio in the all-stock deal while Softbank takes a hit

T-Mobile US Inc (NASDAQ:TMUS) and Sprint Corp (NYSE:S) revealed Thursday that they have agreed on new terms for their merger, as the wireless carriers race to close the deal after overcoming a federal court challenge. 

The new merger terms will reduce the stake of major Sprint shareholder SoftBank Group Corp (OTCMKTS:SFTBY), while leaving the offer to other shareholders unchanged. 

The parties will improve the exchange ratio in the all-stock deal for T-Mobile’s parent, Deutsche Telekom AG, the companies said in a statement.

READ: Bigtincan wins record $7.2 million T-Mobile contract extension, shares surge

Under the reworked deal, SoftBank will hold about 24% of the combined entity, down from 27% under the earlier terms. T-Mobile’s parent Deutsche Telekom will hold about 43% of the combined entity, up from the 42% that the German group would have held.

Originally, 9.75 Sprint shares were to be exchanged for each T-Mobile share. Under the revised deal, SoftBank, which owns more than 80% of Sprint’s stock, will exchange the equivalent of 11 of its shares for each T-Mobile share. Sprint’s other shareholders will continue to get the original exchange ratio.

SoftBank has agreed to surrender 48.8 million T-Mobile shares to the new company, to be called T-Mobile. Those shares could be reissued to SoftBank if T-Mobile’s stock price reaches certain milestones beginning two years after the deal closes.

US District Judge Victor Marrero last week allowed the deal to proceed by rejecting arguments from a group of state attorneys general seeking to block the merger as anti-competitive.

T-Mobile said after the court ruling that it was working to close the transaction as soon as April 1.

Contact the author Uttara Choudhury at [email protected]

Follow her on Twitter: @UttaraProactive

Quick facts: T-Mobile US Inc

Price: 131.8 USD

NASDAQ:TMUS
Market: NASDAQ
Market Cap: $163.59 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Ascendant Resources drill program continues looking to expand south zone at...

Ascendant Resources (TSE: AND) President and CEO Chris Buncic joined Steve Darling from Proactive with news the company's drill program continues as the look at the South Zone of the Lagoa Salgada Project in Portugal. Buncic telling Proactive they are expecting to have results from this...

14 hours, 55 minutes ago

2 min read