Telekom boosts its ownership in T-Mobile US.
Deutsche Telekom's U.S. daughter, T-Mobile, is proving to be a significant profit source for the telecom group. To strengthen its position, the mother company is finalizing a purchase deal with Softbank, increasing its ownership stake in the process. This move involves a hefty three-digit million amount.
Deutsche Telekom has purchased an additional 6.7 million shares from the tech investor Softbank in the American mobile phone operator, T-Mobile, at a price of $99.51 per share. This represents a 45% discount compared to the previous Friday's closing price. The transaction, therefore, amounts to approximately $666.7 million ($620.2 million). This latest deal marks the completion of a fixed-price buyout option, giving Telekom the right to purchase up to 45 million T-Mobile shares.
While exact numbers are not yet known, it is certain that this acquisition will increase Telekom's stake in T-Mobile by 0.6 percentage points, bringing it over the 50% mark. However, the exact percentage can't be disclosed yet, as the acquisition of Mint Mobile is partly settled through T-Mobile shares.
To reclaim majority ownership in T-Mobile, Deutsche Telekom entered into a complicated deal with Softbank some time ago. This agreement encompassed various buyout options and Softbank's involvement in the Bonn-based company. As a result of the merger of T-Mobile with its US rival Sprint, Softbank became a major shareholder in Telekom's daughter.
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Deutsche Telekom's increase in ownership of T-Mobile US through share trading in the company is being facilitated by purchasing additional shares from Softbank. Despite German Telekom already being a significant player in T-Mobile, this acquisition will further enhance its control, surpassing the 50% mark.
