SoftBank kicks off $ 21 billion from the sale of T-Mobile, shares

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Group SoftBank Corp has unveiled a series of transactions, Monday, to divest of more than $ 21 billion of stock in AMERICAN mobile operator T-Mobile US Inc, which is seeking funding for $ 41 billion of share repurchases and debt reduction plan.

SoftBank shares have more than doubled since the middle of the month of March, despite the economic uncertainty, fueled by the COVID-19 pandemic, as chief executive officer Masayoshi Son is moving to the shed or the trim of its interests in other companies such as Alibaba Group Holding.

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While the transfers have financed a string of share buybacks, delighting investors, including hedge fund Elliott Management Corp, they have raised concerns among rating agencies on the Japanese financial conglomerate.

They come after a number of SoftBank investments, including office space-sharing start-up WeWork and payment processor Wirecard AG, embittered, and has suspended efforts to raise a successor to its $ 100 billion Vision Fund.

T-MOBILE LAYS OFF EMPLOYEES A MONTH AFTER A $ 26 BILLION SPRINT MERGER

A lot of T-Mobile of the shares to be transferred by SoftBank, have been acquired by T-Mobile, who will in turn sell them on the open market and private investors. SoftBank’s Chief Operating officer Marcelo Claure will acquire more than $ 500 million of T-Mobile stock, according to regulatory filings.

TickerSecurityLastChangeChange %
TMUST-MOBILE US106.60-0.30-0.28%

Overall, SoftBank is going to divest itself of two-thirds of its 24.6% stake in T-Mobile. It has also granted Deutsche Telekom AG, the owner of one of 43.6% of the share capital of T-Mobile, call options to acquire the balance of its T-Mobile shares. The call options expire in 2024.

T-MOBILE EXPECTS TO ADD HUNDREDS of THOUSANDS OF NEW SUBSCRIBERS THAN EXPECTED

SoftBank will pay T-Mobile a $300 million fee for facilitating transactions.

Goldman Sachs, Morgan Stanley, Citigroup and J. P. Morgan have been appointed as joint lead book-running managers of the offering. Barclays is serving as the chief leader and Deutsche Bank Securities serves as joint dealer-manager.

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PJT Partners is acting as financial advisor to the independent committee of the board of directors of T-Mobile, while the Raine Group LLC acted as financial advisor to SoftBank.

(Reporting by Krystal Hu in New York; Additional reporting by Bharath Manjesh in Bangalore; Editing by Shinjini Ganguli and Stephen Coates)

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