Deutsche Telekom nears majority control of T-Mobile US

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Deutsche Telekom now owns 48.4% of T-Mobile US after buying 30.5 million shares from Japanese firm SoftBank for a total of US$2.4 billion.

SoftBank still holds about 39.7 million shares in T-Mobile US, currently worth about $5.2 billion.

Deutsche Telekom paid for the shares with the €4 billion it received from the sale of the T-Mobile/Tele2 Netherlands joint venture to private equity firms Apax Partners and Warburg Pincus.

Capacity said then that Deutsche Telekom had reserved $2.4 billion to increase its stake in T-Mobile US by exercising call options on SoftBank shares – dating back to the $26 billion all-shares merger of SoftBank-owned Sprint and T-Mobile US.

Today’s deal increases Deutsche Telekom’s stake in T-Mobile US by 1.7 percentage points. T-Mobile US’s share price went up to $131.44 on news of the deal. In early January it was $99.30. Market cap of T-Mobile US is $162.9 billion.

In Germany, Deutsche Telekom shares were also up to €17.20, valuing the company at €85.4 billion – though its 48.4% stake in T-Mobile US alone is worth $78.8 billion or €72.8 billion.

SoftBank shares also went up on the news. It holds a 4.5% stake in Deutsche Telekom as well as 39.7 million shares in T-Mobile US, worth about $5.2 billion.