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Deutsche Telekom Wants SoftBank's T-Mobile Shares

By Donna Fuscaldo – Jun 19, 2020 at 12:46PM

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Deutsche Telekom has the first right of refusal for the shares under an agreement with SoftBank.

Deutsche Telekom is holding discussions with SoftBank (SFTBF 0.76%) about purchasing shares in T-Mobile USA (TMUS -0.35%).

During the telecom giant's annual meeting, Tim Hoettges, CEO of Deutsche Telekom, said the company, which owns 43% of T-Mobile, has the right of first refusal to purchase shares from SoftBank.

A map of the U.S. with digital dots showing cellular connectivity.

IMAGE SOURCE: GETTY IMAGES.

Under a shareholder agreement with the Japanese tech stock, Deutsche Telekom is able to purchase any shares SoftBank is selling, allowing it to maintain its ownership stake in the U.S. wireless carrier, notes Reuters. SoftBank owns a 25% stake in T-Mobile USA.

Deutsche Telekom hasn't reached an agreement yet with SoftBank. 

Earlier this week, SoftBank announced it was exploring a potential sale of some of its T-Mobile USA holdings. In a press release, it said its "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 could sell two-third of its holdings raising $20 billion, CNBC has reported. 

Facing mounting losses in its Vision Technology fund, which invests in the technology leaders of tomorrow, SoftBank announced plans to sell $41 billion in assets to shore up cash. In addition to the potential stake sale in T-Mobile USA, SoftBank announced last month it's selling 240 million shares or about 5% of its wireless business in Japan. Once it completes the transaction, it will own 62.1%. 

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
$134.17 (-0.35%) $0.47
SoftBank Group Corp. Stock Quote
SoftBank Group Corp.
SFTBF
$34.54 (0.76%) $0.26

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