SoftBank US stake sale tipped as imminent - Mobile World Live

SoftBank US stake sale tipped as imminent

19 MAY 2020

Additional details emerged about a potential move by SoftBank Group to cut its stake in T-Mobile US, with Bloomberg reporting the company aimed to sell $20 billion-worth of its current holding.

The news outlet placed SoftBank’s stake at $31 billion, meaning the rumoured deal would amount to a significant portion of its share in the recently combined business. As previously reported, Deutsche Telekom is in the frame as a purchaser, with Bloomberg stating other investors are also in discussions and a deal could be agreed this week.

Terms of the Sprint and T-Mobile merger agreement would require Deutsche Telekom to agree to a sale to a third party, though direct transfers between the parents are fair game.

Deutsche Telekom holds a 43 per cent stake in T-Mobile, and CEO Timotheus Hoettges said on the German incumbent’s recent earnings call “we believe in the stock” but did not answer a question about upping its holding.

In March, Reuters speculated SoftBank could look to cut its T-Mobile stake after the Japan-based company outlined plans to shed $41 billion in assets to cut debt.

The rumour mill stepped-up this week after SoftBank booked a record net loss of JPY961.6 billion ($8.9 billion) in the year to end-March.



Diana Goovaerts

Diana is Mobile World Live's US Editor, reporting on infrastructure and spectrum rollouts, regulatory issues, and other carrier news from the US market. Diana came to GSMA from her former role as Editor of Wireless Week and CED Magazine, digital-only...

Read more