T-Mobile and Sprint strike a final deal on price

hand shake
The transaction could close as early as April 1, 2020. (Pixabay)

T-Mobile US parent company Deutsche Telekom and Sprint parent company SoftBank have struck an amended deal for T-Mobile to buy Sprint. The deal is a bit more favorable to Deutsche Telekom, which will now hold approximately 43% of the New T-Mobile shares as opposed to the 42% it previously would have held. SoftBank will hold 24% of the New T-Mobile shares, instead of the 27% it would have held. The remaining approximately 33% of shares will be held by public shareholders.

“With today’s agreement in place, we are now turning our attention toward our goal of closing this transaction and creating the New T-Mobile as early as April 1, 2020,” said Mike Sievert, COO and President of T-Mobile, and appointed CEO of the company starting on May 1, 2020.

RELATED: Sievert to take T-Mobile helm in 2020 when Legere steps down

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U.S. District Judge Victor Marrero ruled last week that T-Mobile and Sprint’s $26 billion merger should be allowed, disagreeing with a coalition of 14 state attorneys general that had sued to block the deal.

The Financial Times reported last week that Deutsche Telekom may want to renegotiate the terms of the Sprint purchase because Sprint’s value has deteriorated since the deal was struck two years ago.

On T-Mobile’s earnings call with investors earlier this month, CEO John Legere said, “We've had a very strong partnership with Sprint. And if there is a need for an amendment to the BCA [Business Combination Agreement] including possibly a price, we would handle that very swiftly after the deal was approved.”

When the deal was first announced in April 2018 Sprint shares were trading at about $6.50. But the company’s stock had suck to about $4.80 before Judge Marrero’s ruling. Sprint’s stock closed today at $9.48.

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