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Feb. 20, 2020, 6:54 p.m. EST

Sprint, T-Mobile tweak merger terms to give Deutsche Telekom bigger stake

SoftBank’s stake to decrease, while public stake grows

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By Cara Lombardo , Dana Cimilluca and Drew FitzGerald


Reuters
The T-Mobile and Sprint combination was worth $26 billion when the carriers originally struck the deal in April 2018.

Sprint Corp.   and T-Mobile US Inc. /zigman2/quotes/204659678/composite TMUS -1.21%   have agreed on new terms for their merger, as the wireless carriers race to close the deal after overcoming a federal court challenge.

The parties will improve the exchange ratio in the all-stock deal for T-Mobile’s parent, Deutsche Telekom AG /zigman2/quotes/205973137/delayed DE:DTE +0.32%  , the companies said in a written statement confirming an earlier Wall Street Journal report.

U.S. District Judge Victor Marrero last week allowed the deal to proceed by rejecting arguments from a group of state attorneys general seeking to block it as anticompetitive. T-Mobile said after the court ruling that it was working to close the transaction as soon as April 1.

Originally, 9.75 Sprint shares were to be exchanged for each T-Mobile share. Under the revised deal, SoftBank Group Corp., which owns more than 80% of Sprint’s common stock, will exchange the equivalent of 11 of its shares for each T-Mobile share. Sprint’s other shareholders will continue to get the original exchange ratio.

Deutsche Telekom is to own about 43% of the combined company now, up from just below 42% when the deal was first announced nearly two years ago, the companies said. SoftBank’s percentage will drop to approximately 24% from 27%. The remaining 33% is to be held by the public, up from 31%.

An expanded version of this report appears on WSJ.com.

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/zigman2/quotes/204659678/composite
US : U.S.: Nasdaq
$ 85.80
-1.05 -1.21%
Volume: 1.00M
April 9, 2020 10:53a
P/E Ratio
21.30
Dividend Yield
N/A
Market Cap
$107.34 billion
Rev. per Employee
$832,885
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/zigman2/quotes/205973137/delayed
DE : Germany: Frankfurt
12.37
+0.04 +0.32%
Volume: 50,571
April 9, 2020 4:37p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
N/A
Rev. per Employee
€350,787
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