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.