SoftBank raises $4.8 billion from sale of 21.5 million T-Mobile shares at $224 each, term sheet shows
SoftBank Group Corp. is seeking to raise approximately $4.8 billion through an unregistered overnight block sale of 21.5 million T-Mobile US Inc. shares, according to terms of the deal seen by Bloomberg News [1]. The Japanese technology giant is offering the shares for $224 to $228 each, representing a discount of up to 3% from T-Mobile's closing price of $230.99 on Monday, June 16 [2]. The sale would represent about 1.9% of T-Mobile's outstanding shares.
The potential deal would be the largest U.S. share sale since Toronto-Dominion Bank sold a $13.1 billion stake in Charles Schwab in February [2]. Bank of America Corp is working on the deal, with SoftBank and T-Mobile not immediately responding to requests for comment [1].
This sale comes after SoftBank reported a significant profit for the year ended March. In May, the company reported a 1.15 trillion yen ($7.94 billion) profit for the year, compared to a loss of 227.6 billion yen the previous year [1]. SoftBank's investment strategy, which includes high-growth technology companies like Alibaba Group and the bankruptcy of WeWork, is well-documented [1].
SoftBank received its T-Mobile shares with the completion of T-Mobile's $26.5 billion acquisition of Sprint in April 2020. Later that year, SoftBank reduced its stake in T-Mobile via a $21 billion deal to help fund a record buyback of SoftBank's shares [2].
The sale of T-Mobile shares could be a strategic move for SoftBank, as it seeks to bolster its financial position and potentially invest in other high-growth opportunities. However, the discount offered on the shares may indicate SoftBank's current financial needs or a strategic decision to reduce its stake in T-Mobile.
References:
[1] https://finance.yahoo.com/news/softbank-seeks-raise-4-9-225036807.html
[2] https://www.businesstimes.com.sg/companies-markets/telcos-media-tech/softbank-seeks-raise-us4-9-billion-t-mobile-share-sale
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