© Reuters. FILE PHOTO: A crow rests on the GSM mobile phone antennas of Deutsche Telekom AG atop the German telecoms giant’s headquarters in Bonn, Germany. REUTERS/Wolfgang Rattay
DUESSELDORF, Germany (Reuters) -Deutsche Telekom said it has bought additional shares in T-Mobile US (NASDAQ:TMUS) from Softbank (OTC:SFTBY) for $2.4 billion, bringing CEO Tim Hoettges closer to his goal of securing direct control over the U.S. telecoms operator.
The purchase of the 21.2 million shares via a call option raises Deutsche Telekom (OTC:DTEGY)’s stake in T-Mobile US to 48.4%, within touching distance of a majority stake, from below 47%, the German company said on Wednesday.
As part of a deal agreed with Softbank in 2020, Deutsche Telekom paid a fixed price of $101.46 per T-Mobile US share for 11.8 million of the shares, and $128.68 per share for the rest, based on the stock’s weighted average price.
That means the average price for the deal was $113 per T-Mobile US share, compared with Tuesday’s closing price of $131.44.
Deutsche Telekom used part of the roughly 4 billion euros it received from the sale of its T-Mobile Netherlands business to pay for the shares.