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oftBank has also given T-Mobile’s parent company the option to buy most of its remaining stake.<\/p>\n <\/p>\n Image: T-Mobile<\/span><\/figcaption><\/figure>\n SoftBank Group has announced it will sell around two-thirds of its T-Mobile shares and also give the telco’s parent company, Deutsche Telekom AG, options to buy most of its remaining stake as part of ongoing efforts to reduce debt.<\/p>\n The first deal will see SoftBank Group sell over 198 million of its T-Mobile shares to T-Mobile itself. <\/p>\n Once those shares are sold, T-Mobile will then sell them via public and private offerings, to T-Mobile shareholders and to Marcelo Claure, a SoftBank director.<\/p>\n As part of that deal, SoftBank Group will also pay T-Mobile $300 million, in addition to any fees and expenses paid by T-Mobile in relation to the transaction. <\/p>\n In a separate deal, SoftBank Group will give Deutsche Telekom options to buy over 100 million T-Mobile shares, which accounts for most of the Japanese conglomerate’s remaining stake in the US telco. The options will be available until 22 June 2024.<\/p>\n SoftBank added it would lose its right to nominate four of T-Mobile’s 14 directors, with that number to be reduced to either one or zero, depending on its ownership in T-Mobile following the transactions.<\/p>\n SoftBank acquired its stake in T-Mobile only two months ago, after the telco merged with the then-SoftBank owned Sprint<\/a>.<\/p>\n SoftBank’s decision to part with its T-Mobile shares is part of its ¥4.5 trillion ($41 billion) debt reduction scheme<\/a>, announced in March, which was set up to increase its cash reserves in the face of negative performance by several of its key investments.<\/p>\n Prior to the sale, SoftBank Group had revealed an operating loss of ¥1.36 trillion for the fiscal year ended March 31, which was its first annual loss in 15 years<\/a>. The trillion dollar figure was largely attributed to SoftBank’s Vision Fund experiencing a ¥1.93 trillion loss. Compared to the year prior, the fund posted a ¥1.26 trillion profit.<\/p>\n The Vision Fund’s consumer investments, real estate investments, and transportation and logistics investments — which include Uber, Didi Chuxing, and Grab — were hit particularly hard. The fair value of these three segments fell by $3.3 billion, $3.3 billion, and $2.8 billion, respectively, in the three months to March alone. <\/p>\n As part of the debt reduction scheme, SoftBank will use any accrued funds, which includes the proceeds from the sale of its stake in T-Mobile US, to buy back up to ¥2 trillion worth of shares. This is in addition to two separate ¥500 billion share buybacks that were announced in March<\/a> and May<\/a>, respectively. <\/p>\n Beyond the losses, SoftBank is also facing a lawsuit from WeWork<\/a> for its decision to back out of a $3 billion tender offer that was agreed upon in October last year.<\/p>\n Tags:<\/b> Campbell Kwan<\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"![\"T-Mobile\"](\"https:\/\/zdnet3.cbsistatic.com\/hub\/i\/2020\/03\/05\/47099d80-5dca-4651-96b9-af192ee2a098\/t-mobile.jpg\")
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oftBank has also given T-Mobile’s parent company the option to buy most of its remaining stake. Image: T-Mobile SoftBank Group has announced it will sell around two-thirds of its T-Mobile shares and also give the telco’s parent company, Deutsche Telekom AG, options to buy most of its remaining stake as part of ongoing efforts … Continue reading SoftBank to sell off at least two-thirds of its stake in T-Mobile<\/span><\/a> Continue Reading