Softbank to Acquire 70% Stake in Sprint for $20.1 Billion
Oct 14, 2012, 7:31 PM by Eric M. Zeman
updated Oct 15, 2012, 7:30 AM
Softbank and Sprint today officially announced that Softbank will acquire 70% of Sprint for a total of $20.1 billion. Softbank will pay Sprint $8 billion directly for an unspecified number of shares and then an additional $12 billion in additional shares from the market. In order to complete the transaction, Softbank will first set up a shell company called New Sprint in the U.S. New Sprint will be the legal vehicle through which Softbank takes control of its interest in Sprint, which will become a subsidiary of New Sprint. New Sprint will have its own board of directors, but soem of Sprint's existing board will serve on New Sprint's board, as well. Current Sprint CEO Dan Hesse will remain at the helm of the nation's third-largest network operator after the transaction takes place. The partial acquisition by Softbank will give Sprint immediate access to a large amount of cash to fund operations, further build out and improve its CDMA and LTE networks, and potentially purchase smaller network operators. The companies expect the transaction to close by the middle of 2013, pending board and regulatory approval.
more info at Sprint / Softbank »
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