US wireless carrier T-Mobile US said it has priced a sale of its shares at $103 each in a deal that will see SoftBank Group divest a portion of its stake, a major step in the Japanese conglomerate’s plan to sell assets.
- T-Mobile US Inc prices its shares at $103 each
- As part of the event SoftBank will divest its stake during the sale
- SoftBank seeks funding for a $41 billion share buybacks and debt reduction plan
The pricing comes after SoftBank unveiled a series of transactions on Monday to divest more than $20 billion of stock in T-Mobile, as it seeks funding for a $41 billion share buybacks and debt reduction plan.
The sale price is a 4% discount to T-Mobile’s Tuesday closing price.
Together with SoftBank’s already announced monetisation of stakes in e-commerce giant Alibaba Group Holding and wireless carrier Softbank Corp, “we now believe the selling is complete,” Sanford C. Bernstein analyst Chris Lane wrote in a note to clients.
The injection of funds will relieve pressure on SoftBank after investments from CEO Masayoshi Son and his $100 billion Vision Fund have soured and hammered the group’s earnings.
SoftBank has spent 500 billion yen (approximately $4.7 billion) on a share buyback plan that will total up to 2.5 trillion yen. Son is due to address shareholders on Thursday in his first public appearance since May’s earnings presentation.
The team at Platform Executive hope you have enjoyed the ‘T-Mobile shares priced at $103 each in SoftBank sale‘ article. Automatic translation from English to a growing list of languages via Google AI Cloud Translation. Initial reporting via our official content partners at Thomson Reuters. Reporting by Joshua Franklin in New York and Sam Nussey in Tokyo. Editing by Muralikumar Anantharaman and Christopher Cushing.