Key Takeaways
- SoftBank said it will receive more than 48.75 million shares of T-Mobile U.S. as part of its agreement to sell Sprint in 2020.
- The Japanese firm indicated the shares were valued at $7.59 billion.
- Softbank had purchased a majority stake in Sprint in 2013 and then struck the merger deal with T-Mobile in 2020.
American depository receipts (ADRs) of Softbank were up about 2.5% Wednesday after the company said it would receive more shares of T-Mobile U.S. (TMUS) as part of the sale of Sprint.
The Japanese conglomerate said it will receive 48.75 million T-Mobile shares valued at approximately $7.59 billion for no additional cost following the satisfaction of conditions outlined in the Letter of Agreement for the 2020 Sprint acquisition.
Softbank purchased a majority stake in Sprint for about $22 billion in July 2013. In 2020, SoftBank sold the company to T-Mobile and a condition of that agreement included the current payout requirement.
The company said it expects T-Mobile to issue the shares within 10 days of the request.
T-Mobile U.S. shares were up slightly on the news. They had hit an all-time high earlier this month, and remain in positive territory for 2023.
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