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- Acquiring 21.2 million T-Mobile US shares from SoftBank for 2.4 billion U.S. dollars
- Re-investing part of the proceeds from the successful sale of T-Mobile Netherlands
Deutsche Telekom increases its stake in the U.S. subsidiary T-Mobile US Inc. to 48.4 percent of the capital. It acquires a further 21.2 million T-Mobile US shares from SoftBank Group Corp. at an agreed value of 2.4 billion U.S. dollars translating into a blended price of 113 U.S. dollars per T-Mobile US share.
Deutsche Telekom is thus taking a further step towards its declared strategic goal of acquiring the majority of the capital of T-Mobile US.
For the share acquisition that has now taken place, Deutsche Telekom is exercising part of the call options on shares of T-Mobile US stock that it had agreed with SoftBank on June 23, 2020.
At that time, Deutsche Telekom and SoftBank had agreed, amongst other things, that Deutsche Telekom could acquire a total of 101 million T-Mobile U.S. shares from SoftBank's portfolio flexibly executing call options until June 2024.
In a first step, Deutsche Telekom acquired 45 million T-Mobile shares from SoftBank in September 2021 as part of this agreement. This step increased its stake in T-Mobile US to 46.7 percent of the capital at last count.
In a second step, Deutsche Telekom now exercised a further 21.2 million call options, of which 11.8 million have a fixed price of 101.46 U.S. dollars per T-Mobile US share. Deutsche Telekom is acquiring a further 9.3 million T-Mobile US shares at a price of 128.68 U.S. dollars per share based on a weighted average price of the T-Mobile share. For the total number of shares purchased, this results in an average price of approximately 113 U.S. dollars per T-Mobile US share. The current price of the share on Nasdaq on April 11, 2022 was 130.42 U.S. dollars.
Deutsche Telekom is using part of the approximately 4 billion Euros received from the recently completed sale of T-Mobile Netherlands to purchase the shares.
This media information contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. They are generally identified by the words “expect,” “anticipate,” “believe,” “intend,” “estimate,” “aim,” “goal,” “plan,” “will,” “seek,” “outlook,” or similar expressions and include generally any information that relates to expectations or targets for revenue, adjusted EBITDA AL, or other performance measures. Forward-looking statements are based on current plans, estimates, and projections, and should therefore be considered with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. They include, for instance, the progress of Deutsche Telekom’s staff-related restructuring measures and the impact of other significant strategic or business initiatives, including acquisitions, dispositions, and business combinations. In addition, movements in exchange rates and interest rates, regulatory rulings, stronger than expected competition, technological change, litigation and regulatory developments, among other factors, may have a material adverse effect on costs and revenue development. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, Deutsche Telekom’s actual results may be materially different from those expressed or implied by such statements. Deutsche Telekom can offer no assurance that its expectations or targets will be achieved. Without prejudice to existing obligations under capital market law, Deutsche Telekom does not assume any obligation to update forward-looking statements to account for new information or future events or anything else. In addition to figures prepared in accordance with IFRS, Deutsche Telekom presents alternative performance measures, e.g., EBITDA, EBITDA AL, adjusted EBITDA, adjusted EBITDA AL, adjusted EBITDA margin AL, Core EBITDA, adjusted EBIT, EBIT margin, adjusted net profit/loss, adjusted earnings per share, free cash flow, free cash flow AL, gross debt, and net debt. These measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Alternative performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
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