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Hardware & electrical equipment

Arm Holdings owner SoftBank ends year on high with T-Mobile US boost

SoftBank, the owner of UK chip maker Arm Holdings, got a boost as it received shares worth US$7.6 billion in T-Mobile US.

The Japanese tech investor got the 48.75 million shares after conditions, which were set out when its US telco Sprint merged with T-Mobile, were met, it said.

SoftBank's interest in T-Mobile US doubles to 7.64% as a result of the new shares being issued and more importantly, said analysts, increases the proportion of listed assets in its portfolio.

"This increases the proportion of listed, measurable equity in hand on (SoftBank Group's) balance sheet, and, even better, proportions of marginable equity relative to indebtedness," Macquarie analyst Paul Golding wrote in a note quoted by Reuters.

SoftBank's shares rose 5% on the news, their biggest gain in more than a month.

Analysts added that T-Mobile US can now be counted as another success in what has been a mixed year for SoftBank.

The year's highlight was the float of a small stake in Arm Holding, but set against that was the bankruptcy of office-sharing firm WeWork.

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