T-Mobile, Sprint amend merger terms, reduce SoftBank stake to 24%

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T-Mobile, Sprint amend merger terms, reduce SoftBank stake to 24%

Late on Thursday, the 20th of February 2020, the third- and fourth-largest US wireless carriers, T-Mobile US alongside Sprint Corp. respectively, had issued a joint statement saying that the companies had amended the terms of their merger deal which would involve reducing stakes of the Japanese investment conglomerate SoftBank, an influential stakeholder of Sprint Corp.

in to the merger, nonetheless, the amended merger deal which would be creating the third-largest wireless carrier in the United States behind Verizon Communications and AT&T Inc., had kept the offer to other stakeholders unchanged.

Aside from that, according to the amended merger deal terms of which were released late on Thursday (February 20th), SoftBank’s stake in the newly formed entity was slashed to 24 per cent from an earlier 27 per cent, while the T-Mobile US Inc.-parent Deutsche Telekom’s stake was raised to 43 per cent in the combined entity from an earlier 42 per cent, while the T-Mobile US Inc.

shareholders but SoftBank would be retaining the original exchange ratio as beforementioned. Meanwhile, followed by the release of Thursday’s (February 20th) joint statement from Sprint Corp. and T-Mobile US Inc., shares’ prices of Sprint Corp.

rose as much as 5 per cent to $9.95 in post marker trading, while T-Mobile stocks fell by 1.5 per cent to $98 per share in post-market trading.