Deliver Your News to the World

Deutsche Telekom acquires 6.7 million T Mobile US shares significantly below market price

Agreement with SoftBank to exercise options at fixed price of 99.51 U.S. dollars per share


Deutsche Telekom is acquiring roughly 6.7 million additional shares in its subsidiary T Mobile US (TM US). It is exercising call options on TM US shares held by SoftBank from Japan, which were agreed in June 2020. The fixed exercise price at that time of 101.46 U.S. dollars per TM US share is being adjusted to 99.51 U.S. dollars to account for the cumulative dividend payments made or recorded by T Mobile US of 1.95 U.S. dollars since then. The agreement allows Deutsche Telekom to acquire the shares at a 45 percent discount to the current price of the TM US share of 179.82 U.S. dollars as per June 7, 2024.

The transaction solidifies Deutsche Telekom’s majority stake in T-Mobile US. The additional shares represent around 0.6 percent of T Mobile US’s outstanding shares.  

Upon completion of the transaction, Deutsche Telekom will have exercised all 44.9 million fixed price options received from SoftBank to acquire TM US shares, thereby continuously increasing its stake in T Mobile US at favorable conditions.

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.

About Deutsche Telekom: Deutsche Telekom at a glance

( Press Release Image: )


This news content was configured by WebWire editorial staff. Linking is permitted.

News Release Distribution and Press Release Distribution Services Provided by WebWire.