6.7 million papers
Telekom increases stake in T-Mobile US
10.06.2024, 11:27 a.m.
The US subsidiary T-Mobile is the profit pearl of the Telekom Group. The parent company is now entering into a purchase option with Softbank and is increasing its share. The Bonn-based company is investing a high three-digit million amount in this.
Deutsche Telekom has purchased another tranche of shares in the US mobile operator T-Mobile from technology investor Softbank. The Bonn-based company announced the purchase of 6.7 million shares at a price of $99.51 per share. This is a discount of 45 percent compared to T-Mobile’s closing price last Friday. In total, the deal was worth a good $666.7 million (€620.2 million). According to the information, this transaction was the conclusion of a fixed-price purchase option agreed in 2020 for a total of almost 45 million shares.
In addition, Telekom still has the option of purchasing additional securities from Softbank at a variable price. The current deal increases Telekom’s stake in T-Mobile by 0.6 percentage points and remains at more than 50 percent. The exact amount cannot be disclosed at present, however, as the takeover of the US mobile operator Mint, among other things, is being paid for in part in shares.
In order to regain the majority of T-Mobile, Telekom concluded a complex deal with the technology investor several years ago. In addition to various purchase options, this also included Softbank’s entry into the Bonn-based company, which the Japanese paid for with T-Mobile shares. Softbank became a major shareholder in the Telekom subsidiary as a result of the merger of T-Mobile with its US rival Sprint.