(Bloomberg) -- SoftBank Group Corp. is selling shares in T-Mobile US Inc. for $103 apiece, finalizing a $20 billion deal through which the Japanese investment giant will unload a stake in the wireless carrier.
The pricing for the public offering of about 143.4 million shares in the mobile phone company, controlled by Germany’s Deutsche Telekom AG, marks a nearly 4% discount to T-Mobile’s Tuesday close. Nearly 200 million shares overall are changing hands as part of the complex transaction.
The deal is part of SoftBank’s broader $42 billion push to unload assets to finance stock buybacks and pay down debt. Masayoshi Son, the company’s founder, is dealing with steep losses in his Vision Fund after writing down the value of investments in the sharing economy from WeWork to Uber Technologies Inc.
SoftBank will now turn its attention to other assets in its portfolio and may pursue an outright sale of part of its stake in e-commerce giant Alibaba Group Holding Ltd. Son has said $11.5 billion raised from issuing contracts to sell stock in the Chinese company was a first step toward unwinding more of its holdings. SoftBank also plans to sell a 5% stake in its Japanese wireless subsidiary.
Read more: SoftBank to Sell Slice of T-Mobile in a $21 Billion Deal
SoftBank agreed to pay T-Mobile $300 million as part of the transaction and will cover all fees and expenses related to the deal. The company became a co-owner of T-Mobile with Deutsche Telekom after the carrier took over Sprint Corp. this year in a $26.5 billion merger.
SoftBank “needs to further enhance its cash reserves,” the Japanese company said in a statement on Tuesday, citing concerns for “a second and third wave of spread of Covid-19.” The Japanese investment giant may invest the proceeds in high-quality securities until they are used for buybacks or debt reductions.
The stock offering was overseen by Goldman Sachs Group Inc., Morgan Stanley, Citigroup Inc., JPMorgan Chase & Co., Barclays Plc, Bank of America Corp., Deutsche Bank AG and Mizuho Financial Group Inc. PJT Partners, meanwhile, served as financial adviser to T-Mobile’s board.
(Updates with pricing confirmation from the first paragraph)
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