Deutsche Telekom: amends merger agreement for US unit

(CercleFinance.com) - Deutsche Telekom said on Friday that the merger deal of its T-Mobile US unit with US rival Sprint has been amended, with the approval of Japan's SoftBank, which controls Sprint.


Under the terms of this amendment, SoftBank will surrender approximately 48.8 million shares acquired in the merger of T-Mobile US and Sprint to the "new" T-Mobile company at the closing of the transaction.

This arrangement will result in an effective exchange ratio of approximately 11 Sprint shares for each T-Mobile share immediately following the closing of the merger.

Under the original agreement, Sprint shareholders received a fixed exchange ratio with one T-Mobile US share for 9.75 Sprint shares.

SoftBank has also agreed to indemnify the "new" T-Mobile US for certain business risks identified after signing.

Following the merger, Deutsche Telekom and Softbank are expected to respectively hold approximately 43% and 24% of the new operator's shares. The remaining 33% will be free float.

Copyright (c) 2020 CercleFinance.com. All rights reserved.