saves having to hand over all of that in cash. The bigger question is whether Chief Executive Tim Hoettges should be upping his holding in the first place.
The good news for Deutsche Telekom shareholders is that, overall, they are getting the T-Mobile shares at a near-20% discount to the current market price, thanks to favourable call options on SoftBank’s approximate 8% holding in the U.S. carrier, a legacy of its acquisition of SoftBank-owned Sprint last year. The other good news is that Hoettges is paying for the bulk of this in shares, rather than cash, despite netting a tidy 3.
, it would have a 94 billion euro enterprise value. Lop that off the group’s 281 billion euro worth, which on Citi figures includes debt, pensions and minority interests, and there’s 187 billion euros left for T-Mobile. Deducting the latter’s net debt reveals an equity value of $150 billion, compared to its actual market value of $170 billion.
- Under the deal, Deutsche Telekom will increase its stake in the U.S. carrier by 5.3% to 48.4% by receiving 45 million shares from SoftBank at an average price of $118 under the share-swap arrangement, and by buying a further 20 million shares in cash at an average of $109 each.
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