Softbank secures $14.8bn in first wave from T-Mobile US share sale
Softbank is set to gain almost $15bn from the first in a series of transactions to unwind its stake in T-Mobile US, as it seeks to bolster its cash reserves following a major annual loss.
T-Mobile said it has priced a sale of its shares at $103 each — a four per cent discount on yesterday’s closing price. The pricing means Softbank’s total intake from the first wave of the selloff will be valued at $14.8bn, people familiar with the matter told the Financial Times.
The Japanese investment giant plans to divest more than $20bn of stock in T-Mobile, as it seeks funding for a $41bn share buyback and debt reduction scheme.
T-Mobile said in a regulatory filing that the transaction will involve some of Softbank’s stake being sold back to T-Mobile’s parent Deutsche Telekom, giving the German group majority ownership of the business.
The US mobile network operator completed its merger with Softbank-backed Sprint in April, following a lengthy antitrust investigation by regulators.
Softbank is itself beset by issues, after swinging to a record annual loss in March as a result of a number of soured bets made by its star Vision Fund.
Softbank reported a ¥1.4 trillion operating loss in the year to 31 March. It had reported a profit of $19.6bn the previous year.
It more than tripled its spending on buying back shares to ¥188.3bn (£1.4bn) between 1 June and 15 June, compared to ¥61bn for the entire month of May.
Yesterday’s offering from T-Mobile US to fund the purchase of the Softbank stake was the biggest secondary stock offering of the year, according to data from Refinitiv.