SoftBank shares rise 10% after a complex deal with Deutsche Telekom

SoftBank Group's shares rose at the most in nine months, after revealing a deal to acquire 4.5% of Deutsche Telekom and sell part of its stake in T-Mobile. US Inc to German Telecom.

The Japanese investment giant has announced a complex deal in which it will swap T-Mobile shares for an initial 225 million shares of Deutsche Telekom.

The German telecom operator will then sell Dutch company T-Mobile for $6.1 billion, using $2.4 billion of that proceeds to buy 20 million shares, the two companies said in a statement. Others on T-Mobile.

SoftBank's stock jumped 9.9%, its highest level since December. The company's founder, Masayoshi Son, who acquired Sprint Corp in 2013, had originally planned to buy T-Mobile.

The goal was to acquire AT&T Inc and Verizon Communications Inc in the United States, but Masa Son was forced to abandon the effort amid pressure from regulators.

Meanwhile, T-Mobile overtook Sprint Corp as the country's third-largest telecoms company and took over its smaller rival last year, leaving Massa Son with a 25% stake. In the new company, according to Bloomberg Agency.

Under the swap agreement, Deutsche Telekom plans to exercise the options granted under the 2020 deal to acquire approximately 45 million shares in T -Mobile, and the issuance of 225 million new shares of SoftBank in return. The German company will then acquire an additional stake in T-Mobile after it completes the sale of the Dutch unit.

At the end of the deal, SoftBank will end up acquiring 4.5% of Deutsche Telekom and about 3.3% of T-Mobile, which could rise to 6.9% provided The American Telecom Company achieved certain achievements.

Last year, Massa Sonne offloaded a portion of the group's holdings in T-Mobile in a $21 billion deal that helped drive a record buyback of SoftBank shares. special.

The Japanese company also pledged $13.3 billion in T-Mobile stock for a $4.38 billion margin loan. SoftBank said in the statement that it will be able to use the shares of Deutsche Telekom and T-Mobile as collateral for financing and hedging purposes.

Deutsche Telekom's management will support the appointment of SoftBank's Chief Operating Officer Marcelo Klore to its supervisory board at the next annual general meeting. Clore also works as a manager at T-Mobile.