Softbank intends to sell T-Mobile shares to Deutsche Telekom, which will hold 50% of the shares


Original title: Softbank intends to sell T-Mobile shares to Deutsche Telekom
Bu Xiaoming / Xinhua News Agency
Japan’s Softbank group plans to sell a significant proportion of its U.S. T-Mobile shares to Deutsche Telekom, US media reported Tuesday. Deutsche Telekom is the controlling shareholder of T-Mobile. Softbank group is raising huge amounts of cash due to investment losses.
If the deal is completed, Deutsche Telekom’s stake in T-Mobile will exceed 50%, the Wall Street Journal reported, citing sources.
It is not clear how many shares Softbank will sell to Deutsche Telekom. T-Mobile’s market value is about $120 billion.
After the merger of T-Mobile and sprint on April 1, the U.S. wireless operators are in a tripartite situation, namely “new” T-Mobile, Verizon Wireless and at & T Mobile.
US media reported in February that the merger of T-Mobile and sprint would remove $40 billion of sprint’s liabilities from Softbank’s balance sheet.
Softbank is seeking to sell assets and improve performance as it has suffered investment losses and shareholder pressure. Sunzhengyi, chairman of Softbank, said in March that Softbank plans to sell $41 billion worth of assets to boost liquidity and raise funds for a large-scale stock Buyback program.
Softbank group reported a record operating loss of 1.4 trillion yen (92.9 billion yuan) in the previous fiscal year, according to its financial report released on Tuesday. The loss is mainly due to the investment loss of its vision fund. By the end of March, the vision fund had invested $75 billion in 88 start-ups with a market value of just $69.6 billion, according to Reuters.
Softbank’s many investments through vision fund suffered losses due to the new crown epidemic, such as Uber, a car Hailing operator, Wework, Oyo, an Indian chain hotel, etc. Softbank lost nearly $10 billion in investment in Uber and joint office space alone.