Deutsche Telekom and T-Mobile USA applaud MetroPCS Stockholder Approval of T-Mobile-MetroPCS Combination
Apr 24, 2013
At a special meeting in Richardson, Texas, the stockholders of MetroPCS approved the agreement with Deutsche Telekom to combine T-Mobile USA with their company. Deutsche Telekom applauds the shareholders’ decision, which clears the path for a new, combined, larger and more powerful mobile services provider in the USA.
“This is a major step for Deutsche Telekom,” said René Obermann, CEO of Deutsche Telekom Group. “We have accomplished a lot in the USA recently, for example our network modernization and the new T-Mobile USA management team, which has seen considerable success. And we have finalized the contracts with Apple and MetroPCS. The merger with MetroPCS is extremely important, since it enables us to be more aggressive in the USA.”
“The merger adds valuable tailwind to our Uncarrier Strategy in the USA,” said Timotheus Höttges, CFO of Deutsche Telekom and Chairman of the newly-formed company. “We have radically changed our business model and launched drastically simplified tariffs. Together with MetroPCS, we will make considerable improvements to our competitive position with our combined state-of-the-art network, more powerful sales model and top devices like the Apple iPhone 5 and the Samsung Galaxy S4.”
With today’s approval by MetroPCS’ stockholders, all the requisite approvals required to complete the proposed combination have been received and the transaction is expected to close by May 1, 2013. In line with the closing, the consolidation of the new company into the Deutsche Telekom Group will be effective as of May 1, 2013.
As part of the transaction, MetroPCS shareholders (status as of March 11, 2013) will receive an advanced cash payment of approximately 1.5 billion US dollars from their company. This will be followed by a reverse stock split of the MetroPCS shares before the company is merged with T-Mobile USA. Following the closing of the transaction, the shareholders of (the former) MetroPCS will receive 26 percent of the shares of the new company, while Deutsche Telekom will hold 74 percent of the merged company. The company will trade under the legal name T-Mobile US and will be listed on the New York Stock Exchange (NYSE) under the symbol TMUS.
About Deutsche Telekom
Deutsche Telekom is one of the world’s leading integrated telecommunications companies with more than 132 million mobile customers, over 32 million fixed-network lines and 17 million broadband lines (as of December 31, 2012). The Group provides fixed-network, mobile communications, Internet and IPTV products and services for consumers, and ICT solutions for business and corporate customers. Deutsche Telekom is present in some 50 countries and has 230,000 employees worldwide. The Group generated revenue of EUR 58.2 billion in the 2012 financial year – over half of it outside Germany (as of December 31, 2012).
To the extent that this release contains any statements that relate to expectations, forecasts or to the future, these statements may be associated with known and unknown risks and uncertainties. Therefore, the actual events and circumstances may differ materially from these statements. Subject to mandatory provisions of law, the company has no obligation and undertakes no obligation to publicly update or revise any of these statements to correctly reflect, subsequently to this release, the actual events and circumstances.