SoftBank in talks to sell part of T-Mobile US stake to DT, report says

18 May 2020

SoftBank Group Corp is in talks to sell ‘a significant portion’ of its T-Mobile US stake to controlling shareholder Deutsche Telekom (DT), the Wall Street Journal has reported, citing unidentified sources. If the transaction comes to fruition, it will see DT’s stake in the newly enlarged mobile operator – which merged with SoftBank’s US wireless unit Sprint last month – rise above 50%. The precise size of the stake that SoftBank is willing to cede has not been disclosed, nor has the value of the shares. Lock-up provisions – agreed as part of the merger – would likely be altered to permit the transaction, the WSJ added.

TeleGeography notes that the long-running mega-merger concluded on 1 April this year. Post-closing, DT and SoftBank are understood to hold approximately 43% and 24%, respectively, of the fully diluted New T-Mobile shares, with the remaining 33% held by public shareholders.

United States, Deutsche Telekom (DT), SoftBank Group Corp, Sprint Corporation (now part of T-Mobile US), T-Mobile US