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.