SoftBank Enters Strategic Partnership with Deutsche Telekom
Sep 7, 2021 By MarketDepth
SoftBank Group Corp. reported entry into a partnership and equity share swap agreement with Deutsche Telekom AG. Under the partnership, SoftBank will gain access to 240 million DT customers across the US and Europe, allowing the portfolio companies to scale quickly at a low cost. The equity share swap agreement will allow DT to exercise a portion of its call options that were granted by SoftBank in connection with their June 2020 agreement. DT will acquire 45 million T-Mobile US (TMUS) shares from SoftBank in exchange for issuing 225 million new DT shares to SoftBank from its authorized capital. DT plans to exercise call options to acquire another 20 million TMUS shares from SoftBank by re-investing USD 2.4 Billion from announced sale of T-Mobile Netherlands.
“This is a landmark transaction that is a true win-win-win for our portfolio companies, SoftBank and Deutsche Telekom.”
Marcelo Claure, Corporate Officer, Executive Vice President & Chief Operating Officer of SoftBank Group Corp. and Chief Executive Officer of SoftBank Group International
“This is a landmark transaction that is a true win-win-win for our portfolio companies, SoftBank and Deutsche Telekom,” said Marcelo Claure, Corporate Officer, Executive Vice President & Chief Operating Officer of SoftBank Group Corp. and Chief Executive Officer of SoftBank Group International. “The long-term strategic partnership will create incredible opportunities for our portfolio companies to turbocharge their growth with access to approximately 300 million customers across Japan, Europe and the US in total. The transaction diversifies our telecoms exposure and results in SoftBank becoming DT’s second largest private shareholder, while retaining meaningful exposure to high-growth TMUS. It also marks a decisive step for DT towards their stated objective of acquiring a majority stake in TMUS, and the addition of the world’s largest technology investor in SoftBank validates their Telco 2030 vision and demonstrates the “Magenta Advantage.” I look forward to partnering with Tim and team long into the future.”
We are delighted to welcome SoftBank as a new key investor and strategic partner for Deutsche Telekom and can’t wait to get to work on the value creation opportunities from this cooperation for both SoftBank and Deutsche Telekom.”
Timotheus Höttges, Chief Executive Officer, Deutsche Telekom AG
