Softbank will sell 198 million T-Mobile shares worth $21 billion

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 Softbank will sell 198 million T-Mobile shares worth $21 billion


Netease technology news on June 23, according to foreign media reports, Softbank of Japan, in order to make up for the investment losses, is selling part of its shares in T-Mobile us, the U.S. wireless operator, worth 21 billion dollars, involving nearly 200 million shares.

T-Mobile said in a statement that of the 198.3 million shares sold by Softbank, it will issue 133.5 million common shares to the public and grant 10 million additional allotment options to Underwriters. In addition, T-Mobile plans to sell up to 3 million shares of common stock to a Delaware statutory trust.

An entity controlled by Marcelo Crowe, a senior Softbank executive and member of the T-Mobile board, will buy 5 million shares from it, with funds coming from Softbank. T-Mobile has the right to buy back nearly 20 million shares.

Softbank had planned to raise 42 billion yuan by selling assets to buy back shares and repay debts. The sale of T-Mobile shares and a 5% stake in the Japanese wireless subsidiary are part of the plan.

The plan may also include a direct sale of some Alibaba shares held by Softbank. Mr. Sun has said that raising $11.5 billion through the sale of some Alibaba shares is the first step in releasing more assets. Alibaba is Softbanks most valuable stake.

Softbank acquired a stake in T-Mobile this year after U.S. regulators approved T-Mobile to buy sprint for $26.5 billion. T-Mobile has a market capitalization of about $132 billion. T-Mobile shares closed at $106.60 on Monday local time, bringing the market value of 198 million shares to about $21 billion. After the announcement, the companys share price fell 1.6% in late trading. As of Mondays close, T-Mobile shares have risen 36% this year.

Both companies earlier said they were discussing a possible deal.

The share issue will be listed and traded on June 24, and will be underwritten by eight institutions including Goldman Sachs, Morgan Stanley and Citigroup. (Chenchen)

Source: Qiao JunJing, editor in charge of Netease Technology Report_ NBJ11279