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SoftBank Exploring Sale of T-Mobile USA Stake

By Donna Fuscaldo – Jun 16, 2020 at 11:15AM

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SoftBank put speculation to rest by confirming its exploring options for its 25% stake in the wireless carrier.

SoftBank (SFTBF 2.79%) is gearing up to sell a stake in T-Mobile USA (TMUS 2.88%) as part of its plan to shore up cash via asset sales. 

In a press release issued Tuesday, the Japanese tech stock confirmed that it decided to explore a potential sale of some of its stake in T-Mobile USA, among other potential financial transactions. SoftBank owns a 25% stake in the wireless carrier. 

A map of the U.S. with  digital dots representing cellular service.

IMAGE SOURCE: GETTY IMAGES.

"SBG is exploring transactions with respect to shares of T-Mobile common stock, including, private placements or public offerings; transactions with T-Mobile or stockholders of T-Mobile, including Deutsche Telekom AG, or third parties; derivative or hedging transactions; margin loans; or other structured transactions," SoftBank wrote in the press release.  

Sources told CNBC that SoftBank wants to unload as much as two-thirds of its holdings, which could fetch it around $20 billion. 

For weeks, rumors have been swirling that SoftBank would sell some of its stake in T-Mobile as it contends with huge losses from its Vision Technology Fund. For its fiscal year ended March 31, the Vision Fund reported a loss of 1.9 trillion yen or close to $18 billion, driven largely by write-offs for investments in Uber and WeWork that went sour.

At the end of March, SoftBank announced it was aiming to sell $41 billion in assets and buy back billions of dollars in shares. It has already announced plans to sell a stake in its Japanese wireless holdings in May and has bought back around $3 billion in shares as of last week. 

Donna Fuscaldo has no position in any of the stocks mentioned. The Motley Fool recommends Softbank Group and T-Mobile US. The Motley Fool has a disclosure policy.

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Stocks Mentioned

T-Mobile US, Inc. Stock Quote
T-Mobile US, Inc.
TMUS
$136.50 (2.88%) $3.82
SoftBank Group Corp. Stock Quote
SoftBank Group Corp.
SFTBF
$35.21 (2.79%) $0.95

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