SoftBank Group Corp announced late Tuesday that it will receive shares in telco T-Mobile US, valued at about $7.59 billion, at no additional cost.
The Japanese tech conglomerate said it told T-Mobile US to issue 48.75 million of its common shares to SoftBank after conditions set out in an agreement made as part of the merger of SoftBank's US telco Sprint and T-Mobile were met.
The additional shares will double SoftBank's T-Mobile US stake to 7.64% from 3.75% currently.
"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 to clients.
The T-Mobile US transaction increases SoftBank's internal rate of return (IRR) on its Sprint investment to 25.5%, Reuters reported.
SoftBank's Japan-listed shares gained more than 4% on Wednesday.