T-Mobile US Inc. and Sprint Corporation revealed on Thursday that the merger agreement between the two to create New T-Mobile will be amended.
When the merger gets finalized, the "effective exchange ratio of approximately 11.00 Sprint shares for each T-Mobile share" will be implemented instead of previously agreed-upon 9.75 following a deal with SoftBank Group Corp, an owner of 84% of Sprint. In turn, Softbank will pass 48.8 million T-Mobile shares it received previously to New T-Mobile. The 9.75 exchange ratio will be used for all Sprint stockholders other than the Japanese conglomerate.
According to the amendment, Deutsche Telekom, a 66% owner of T-Mobile, will now possess a 43% stake in the combined company, while SoftBank will hold 24%. The remaining 33% will be owned by public stockholders. The merger deal will be finalized by July 1, 2020, it was announced in the press release.
