T-Mobile and Sprint stated Thursday that they’d agreed on new merger terms that would scale back the stake of major Sprint stakeholder SoftBank while leaving the offer to other shareholders unchanged.
Under the revised merger deal, SoftBank will hold around 24% of the combined entity, down from 27% under the earlier terms. T-Mobile’s parent Deutsche Telekom will keep 43% of the new entity, up from the 42% that the German group would have held.
Shares of Sprint had been up 5% to $9.95, while T-Mobile plunged 1.5% to $98 in trading after the bell.
SoftBank has agreed to surrender about 48.8 million T-Mobile shares acquired in the merger to the new entity after the deal concludes, altering the exchange ratio to 11 Sprint shares for each T-Mobile share, up than the initially agreed 9.75 shares.
Sprint shareholders, apart from SoftBank, will continue to obtain the original exchange rate.
SoftBank can get the shares back if the merged firm hits stock price breakthroughs, the businesses stated without disclosing the details.
Sources stated SoftBank agreed to the change to avert delaying the close of the merger. If the ratio for the Sprint common shareholders was modified, a new equity opinion and a shareholder vote may have been needed, which might have delayed the close by four months.
Last week, a federal judge accredited the merger contract, dismissing a claim by a bunch of states that said the proposed deal would breach antitrust laws and increase prices.