Sprint T-Mobile Near Agreement On New Merger Terms
„With today`s agreement, we are now focused on our goal of closing this transaction and creating the new T-Mobile as of April 1, 2020,“ T-Mobile COO and President Mike Sievert said in a statement. „We`re about to do what we planned to do from day one – to transform a broken wireless industry and create the new standard for consumers in terms of value, speed, quality and service. The new T-Mobile will literally change wireless forever and now we`re almost ready to get the fun part: bring our teams together, build this loaded non-carrier and become the envy of the wireless industry and beyond! The combined assets of T-Mobile and Sprint are so complementary that the merger is expected to unlock synergies of at least $43 billion for all shareholders. The vast majority of the synergies of this agreement come from the combination of networks such as the reduction of redundant cellular sites and the faster supply of frequencies and other technologies. The company expects seamless, quality integration, as it did with the MetroPCS merger, which was completed a year earlier than planned. These synergies and our combined scale should enable New T-Mobile to improve its financial position, including significant net cash flow, margin expansion and a strong and flexible capital structure. U.S. District Judge Victor Marrero last week authorized the deal to leave because of arguments from a group of attorneys general who are trying to block the merger as anti-competitive. T-Mobile and Sprint recently announced that they have revised their $26 billion merger agreement, which will create the new T-Mobile. This change will result in a trading ratio of approximately 11 Sprint shares per T-Mobile share after the merger is completed, up from the 9.75 shares originally agreed.
The revision is due to SoftBank`s agreed to divest 48.8 million shares of T-Mobile acquired as part of the merger. In addition, at the time of the merger, SoftBank will sell nearly 49 million shares of T-Mobile that it will be able to recover if the stock reaches certain price levels. This agreement essentially gives public shareholders a better price than SoftBank enters into the agreement. As a non-carrier U.S. company, T-Mobile US, Inc. (NASDAQ: TMUS) defines how consumers and businesses purchase wireless services through innovations in advanced products and services. Our advanced national 4G-LTE network offers 86.0 million customers who are not willing to compromise on quality and value, excellent Wi-Fi experiences. T-Mobile US, based in Bellevue, Washington, offers services through its subsidiaries and operates its flagship brands T-Mobile and Metro by T-Mobile. For more information, see www.t-mobile.com. Last week, a federal judge approved the merger treaty and dismissed a complaint filed by a group of states that said the proposed deal would violate antitrust laws and raise prices. A separate agreement reached by SoftBank Group Corp.
in connection with the amendment results in an effective exchange of approximately 11.00 Sprint shares for each T-Mobile share immediately after the merger is completed, an increase from the 9.75 shares originally agreed. This is because SoftBank agreed to sell approximately 48.8 million T-Mobile shares acquired in connection with the merger to New T-Mobile immediately after the closing of the transaction, representing the effective ratio of 11.31 Sprint shares per T-Mobile share. Sprint shareholders other than SoftBank continue to obtain the initial fixed price ratio of 0.10256 T-Mobile shares for each Sprint share or the equivalent of approximately 9.75 Sprint shares for each T-Mobile share. Sprint (NYSE: S) is a communications services company that offers more and more opportunities to connect its customers to what they prefer. Sprint served 54.2 million connections as of December 31, 2019 and is widely known for the development, development and use of innovative technologies, including the first 4G wireless service of a national mobile operator in the United States; Major non-contractors such as Virgin Mobile USA, Boost Mobile and Assu