SoftBank Gets $7.6 Billion T-Mobile Stake Windfall

SoftBank Group Corp. has announced that it would receive shares in telecom company T-Mobile US worth approximately $7.59 billion at no additional cost, propelling the Japanese conglomerate's shares up by 5% in Tokyo, as reported by Sam Nussey for Reuters.

The transaction strengthens the listed assets in SoftBank's portfolio, doubling its T-Mobile US stake to 7.64% from the current 3.75%. I Photo: MIKI Yoshihito Flickr

Masayoshi Son's conglomerate stated that it had instructed T-Mobile US to issue 48.75 million shares in common stock to it after meeting the conditions outlined in an agreement as part of the merger between SoftBank's U.S. telecom subsidiary Sprint and T-Mobile.

The transaction strengthens the listed assets in SoftBank's portfolio, doubling its T-Mobile US stake to 7.64% from the current 3.75%, following the blockbuster listing of chip designer Arm in September.

"This increases the proportion of listed, measurable equity on (SoftBank Group's) balance sheet, and, even better, proportions of marginable equity relative to indebtedness," wrote Macquarie analyst Paul Golding in a client note.

SoftBank's shares were set for their most significant gain in over a month.

The conglomerate has seen only around a 14% increase year-to-date, compared to an almost 30% rise in the benchmark index. The group trades at a discount of approximately 45.5% to the value of its assets, according to Macquarie calculations.

SoftBank's shares were set for their most significant gain in over a month.

The conglomerate has seen only around a 14% increase year-to-date, compared to an almost 30% rise in the benchmark index. The group trades at a discount of approximately 45.5% to the value of its assets, according to Macquarie calculations.

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