- Agreement with SoftBank to exercise options at fixed price of 99.51 U.S. dollars per share
Deutsche Telekom is acquiring roughly 6.7 million additional shares in its subsidiary T Mobile US (TM US). It is exercising call options on TM US shares held by SoftBank from Japan, which were agreed in June 2020. The fixed exercise price at that time of 101.46 U.S. dollars per TM US share is being adjusted to 99.51 U.S. dollars to account for the cumulative dividend payments made or recorded by T Mobile US of 1.95 U.S. dollars since then. The agreement allows Deutsche Telekom to acquire the shares at a 45 percent discount to the current price of the TM US share of 179.82 U.S. dollars as per June 7, 2024.
The transaction solidifies Deutsche Telekom’s majority stake in T-Mobile US. The additional shares represent around 0.6 percent of T Mobile US’s outstanding shares.
Upon completion of the transaction, Deutsche Telekom will have exercised all 44.9 million fixed price options received from SoftBank to acquire TM US shares, thereby continuously increasing its stake in T Mobile US at favorable conditions.
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