SoftBank Group to Take 4.5% Stake in Deutsche Telekom, Form Strategic Partnership -- Update
September 07 2021 - 3:15AM
Dow Jones News
By Kosaku Narioka and Mauro Orru
SoftBank Group Corp. said Tuesday that it agreed on a strategic
partnership and an equity share swap with Deutsche Telekom AG in a
move that would diversify its exposure in Europe, and increase the
German telecommunications company's stake in its T-Mobile US Inc.
business.
The Japanese technology and investment company said it would
receive 225 million new shares in the German telecom company in
exchange for about 45 million T-Mobile US shares it held, and that
Deutsche Telekom also intended to acquire another 20 million
T-Mobile US shares from SoftBank.
Deutsche Telekom's stake in T-Mobile US will increase by 5.3% to
48.4%.
"This agreement furthers Deutsche Telekom's strategic objective
of increasing its ownership stake in T-Mobile US to more than 50%
in order to maintain long-term control and consolidation," Deutsche
Telekom said.
SoftBank said it would hold a 4.5% stake in Deutsche Telekom and
become its second-largest private shareholder and intends to have
board representation, and that it would retain a 3.3% equity stake
in the U.S. mobile company.
Under the strategic partnership, SoftBank portfolio companies
will gain access to Deutsche Telekom's customers across Europe and
in the U.S.
Write to Kosaku Narioka at kosaku.narioka@wsj.com and to Mauro
Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
September 07, 2021 03:00 ET (07:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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