DT Nears Majority T-Mobile Ownership After Stock Swap with SoftBank

Deutsche Telekom agreed to a $7 billion share-swap with SoftBank Group, former owner of Sprint, which gives the German company a near controlling interest in T-Mobile U.S. DT also sold its Dutch unit to private equity houses Warburg Pincus and Apax for $6.1 billion, as it deepens its focus on the U.S. With the share swap, DT raises its stake in T-Mobile U.S. by 5.3% to 48.4%. SoftBank becomes a 4.5% shareholder in DT and retains a 3.3% stake in T-Mobile, which could increase to 6.9% through true-up shares, SoftBank said. The deal is a “win-win” for both companies, said Marcelo Claure, former Sprint CEO, now CEO of SoftBank Group International. “It allows the SoftBank portfolio companies access to a new market, to the European market,” he said on CNBC Tuesday: DT is “undervalued and has a lot of potential in the future.” SoftBank is now the largest shareholder in DT after the German government, he said. “We’re in for the long run,” he said. DT CEO Tim Hottges said earlier this year DT is committed to taking a majority stock interest in T-Mobile (see 2105200064).