SoftBank to sell $21 billion worth of T-Mobile stock

23.06.2020 - Korneychuk Evgeniya
SoftBank to sell $21 billion worth of T-Mobile stock

SoftBank Group Corp. (9984.T) announced on Monday that it would sell up to 198 Million shares of the U.S. wireless carrier T-Mobile U.S. Inc. (TMUS.O) worth $21 billion. The telecom company revealed a series of transactions to seek funds for a $41 billion share buyback and debt reduction plan.

T-Mobile shares were down by 1.5% in after-hours trading on Monday.

SoftBank’s Founder and Chief Executive Officer Masayoshi Son stated that the shares sale is a part of the company’s plan to reduce the heavy debt load and shore up cash amid the coronavirus pandemic.

“Given the current situation where there is a concern for a second and third wave of the spread of COVID-19, (SoftBank Group) believes that it needs to enhance its cash reserves further,” the company said in a statement.

SoftBank said that it would pay T-Mobile a $300 Million fee for facilitating the transactions.

 

 

 

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or Market Solutions limited." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?