Deutsche Telekom Strengthens Majority Stake in T-Mobile US Through SoftBank Agreement

Deutsche Telekom Strengthens Majority Stake in T-Mobile US Through SoftBank Agreement

(IN BRIEF) Deutsche Telekom has announced its acquisition of approximately 6.7 million additional shares in its subsidiary, T-Mobile US (TM US), through a strategic agreement with SoftBank from Japan. This move comes as Deutsche Telekom exercises call options on TM US shares previously agreed upon in June 2020. The fixed exercise price, originally set at 101.46 U.S. dollars per TM US share, has been adjusted to 99.51 U.S. dollars to accommodate cumulative dividend payments made by T-Mobile US since then. This agreement enables Deutsche Telekom to acquire shares at a substantial discount of 45 percent to the current TM US share price, which stands at 179.82 U.S. dollars as of June 7, 2024. With this transaction, Deutsche Telekom strengthens its majority stake in T-Mobile US, further solidifying its position in the telecommunications market. Upon completion, Deutsche Telekom will have exercised all 44.9 million fixed price options from SoftBank, consolidating its ownership in T-Mobile US under favorable terms.

(PRESS RELEASE) BONN, 10-Jun-2024 — /EuropaWire/ — In a move to fortify its majority ownership in T-Mobile US (TM US), Deutsche Telekom (ETR: DTE), one of the world’s leading integrated telecommunications companies and the largest telecommunications provider in Europe by revenue, has announced the acquisition of approximately 6.7 million additional TM US shares from SoftBank. These shares were part of call options agreed upon in June 2020.

Originally set at a fixed exercise price of 101.46 U.S. dollars per TM US share, the exercise price has now been adjusted to 99.51 U.S. dollars to reflect cumulative dividend payments made or recorded by TM US since the agreement. This adjustment accounts for a total of 1.95 U.S. dollars per share.

This strategic agreement allows Deutsche Telekom to secure the shares at a considerable discount of 45 percent compared to the current TM US share price of 179.82 U.S. dollars as of June 7, 2024.

Following the completion of this transaction, Deutsche Telekom will have exercised all 44.9 million fixed-price options received from SoftBank, progressively bolstering its stake in TM US under advantageous terms.

These additional shares represent approximately 0.6 percent of TM US’s outstanding shares, further consolidating Deutsche Telekom’s position as the majority shareholder in T-Mobile US.

Media Contact:

Andreas Leigers
Spokesperson
media@telekom.de
+49 228 181 49494

SOURCE: Deutsche Telekom AG