MetroPCS has given its approval to the amended offer made by Deutsche Telekom for it to combine with T-Mobile USA.
The MetroPCS board of directors recommended that shareholders vote for the proposed deal as the amended offer “significantly improves the value of the proposed combination”.
Deutsche Telekom sweetened its offer last week by reducing the debt carried by the combined company by $3.8 billion, to $11.2 billion. Deutsche Telekom also cut the interest rate payable on the loans by 50 basis points.
In addition, the German company expanded the period it is prohibited from publicly selling shares in the company from 12 months to 18 months after the deal closes.
Two of the largest shareholders and most vehement opponents of the original offer, hedge funds PSAM and Paulson & Co, accepted the revised terms offered by Deutsche Telekom last week, paving the way for the deal to go through.
“We are pleased to offer even more value to MetroPCS stockholders through the amendment of certain terms of our proposed combination with T-Mobile,” said MetroPCS CEO and chairman, Roger Linquist.
Shareholders will continue to receive an immediate $1.5 billion aggregate cash payment, or around $4.06 per share, and will have a total ownership stake of 26 per cent in the combined company.
The merger has already been approved by US regulatory authorities, meaning a shareholder meeting due to take place on 24 April 2013 is the final hurdle for the deal to take place.