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: 113.795 USD

NASDAQ:TMUS
Market: NASDAQ
Market Cap: $143.07 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

Open Orphan signs UK government contract to development COVID-19 Human...

Open Orphan's (LON:ORPH) Chairman Cathal Friel talks to Proactive London after announcing a contract with the UK Government for the development of a COVID-19 human challenge study model. Friel explains that the company, hVIVO, is the world's leader in this sector, having safely run more human...

3 hours, 16 minutes ago

2 min read