SoftBank is selling part of its T-Mobile stake in a secondary offering

- Advertisement -
KEY POINTS
  • SoftBank is selling part of its stake in T-Mobile through a secondary offering, CNBC’s David Faber reported Monday.
  • Morgan Stanley and Goldman Sachs will underwrite the offering, sources told CNBC.
  • The secondary offering is in addition to the sale to T-Mobile’s parent company Deutsche Telekom, sources told CNBC.
- Advertisement -
- Advertisement -
- Advertisement -

SoftBank is selling part of its stake in T-Mobile through a secondary offering, CNBC’s David Faber reported Monday.

Morgan Stanley and Goldman Sachs will underwrite the offering, sources told CNBC.

The Wall Street Journal earlier reported that SoftBank was in talks to sell part of its stake in T-Mobile back to its parent company, Deutsche Telekom. Sources told CNBC the sale will also include a secondary offering for a sizable chunk of the stake.

Shares of T-Mobile dropped about 3% after hours on the news.

News of the sale comes on the same day that SoftBank reported $13 billion in total annual losses for its main business with $18 billion in losses for its massive venture arm, the Vision Fund. The $100 billion fund was created to take big risks on innovative companies and infuse them with capital, but recently it’s suffered from WeWork’s failed IPO and the onset of the coronavirus pandemic, which has disrupted businesses of all kinds.

T-Mobile recently combined with SoftBank portfolio company Sprint after a protracted legal battle. If T-Mobile’s stock hits certain milestones within two years, a source told the Journal, SoftBank will retain rights to 48.8 million shares surrendered to complete the merger. T-Mobile currently has a market valuation of about $126 billion.

Originally published on CNBC.com

Home of Science
Follow me

- Advertisement -

Discover

Sponsor

Latest

Local elections 2022: First-time voters in Harlow share their concernson April 29, 2022 at 1:15 am

Students at a college attended by Mark Knopfler and Reshmin Chowdhury share their election thoughts.

Ukraine conflict: Your guide to understanding day 12on March 7, 2022 at 8:06 pm

Russia is still bombarding cities despite offering escape routes. Here's your guide to day 12 of the war.

Obituary: Raymond Briggson August 10, 2022 at 7:30 am

Award-winning illustrator and cartoonist whose work The Snowman became a Christmas favourite.Award-winning illustrator and cartoonist whose work The Snowman became a Christmas favourite.

Defensive mistakes cost England in friendly defeat against Canadaon April 13, 2021 at 9:08 pm

England suffer a second friendly defeat in the space of four days with two defensive mistakes contributing to a 2-0 loss to Canada.Nichelle Prince...

Covid: Children missing school to protect family holidayson July 13, 2021 at 11:51 am

One mum says "it's something we've got to do" because her children are looking forward to a holiday.
Home of Science
Follow me