Deutsche Telekom buys USD2.4bn T-Mobile US stake from SoftBank

13 Apr 2022

Deutsche Telekom (DT) has reportedly paid USD2.4 billion to Softbank Group Corp to increase its stake in T-Mobile US to 48.4%, as it seeks to gain a majority stake in the US cellco. According to Bloomberg, the German telecoms giant has acquired 21.2 million T-Mobile shares at an average price of USD113 per share. The company is using part of the approximately EUR4 billion (USD4.3 billion) received from the recently completed sale of T-Mobile Netherlands to fund the stake purchase.

According to TeleGeography’s GlobalComms Database, in April 2018 T-Mobile US and smaller rival Sprint entered into a definitive agreement to merge in an all-stock transaction. They sought to create a company which would be 41.7% owned by DT, which would have overall control, and 27.4% owned by Sprint parent SoftBank Group Corp, with the remaining 30.9% in free float. Post-merger, SoftBank decided to enhance its cash reserves by offloading 198.3 million shares in T-Mobile US, in a transaction worth around USD21 billion.

United States, Deutsche Telekom (DT), SoftBank Group Corp, T-Mobile US