SoftBank Sells T-Mobile Shares for $4.8 Billion
In a significant move, Japan’s SoftBank has generated $4.8 billion from the sale of 21.5 million T-Mobile shares, each priced at $224, according to recently disclosed documents.
Details of the Transaction
The shares were offered within a price range of $224 to $228, with the final deal closing at around a 3% discount compared to T-Mobile's closing price of $230.99 on the day of sale. This sizeable block trade reflects SoftBank's strategic decision to divest a portion of its holdings in the U.S. wireless carrier.
SoftBank Remains a Leading T-Mobile Shareholder
Despite the sale, SoftBank continues to hold a commanding position as the second-largest shareholder in T-Mobile, trailing only the company’s largest investor. Prior to the transaction, the Japanese conglomerate owned 7.52% of T-Mobile’s shares, equating to approximately 85.36 million shares valued at nearly $22.76 billion.
Background: SoftBank’s Stake in T-Mobile
The stake stems from SoftBank’s merger arrangement involving its U.S. telecommunications unit, Sprint, and T-Mobile. In late 2023, SoftBank announced it would receive around $7.59 billion worth of T-Mobile shares at no additional cost upon meeting certain terms outlined in the Sprint-T-Mobile merger agreement.
Market Impact and Outlook
This move fits within SoftBank's broader strategy to manage its portfolio amid shifting market dynamics. While the terms sheet has been made public, neither SoftBank nor T-Mobile has provided immediate comments on the sale.
Summary
- SoftBank sold 21.5 million T-Mobile shares at $224 each, raising $4.8 billion.
- The sale price was slightly below T-Mobile’s closing price on the sale day.
- SoftBank still holds over 7.5% of T-Mobile, maintaining a significant equity stake.
- The shareholding is linked to the Sprint-T-Mobile merger deal finalized in 2023.
