106.50 +0.49 (0.46%)
Before hours: 8:38AM EDT
|Bid||106.68 x 900|
|Ask||107.60 x 800|
|Day's Range||105.35 - 107.34|
|52 Week Range||63.50 - 111.58|
|Beta (5Y Monthly)||0.30|
|PE Ratio (TTM)||26.10|
|Earnings Date||Jul. 23, 2020 - Jul. 27, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|Ex-Dividend Date||May 01, 2013|
|1y Target Est||114.99|
5G is the new wireless standard that promises lightning-fast, low-latency wireless communications that will usher in a new era of futuristic technology applications. Three of the best-positioned 5G stocks that still trade at attractive valuations include wireless carrier T-Mobile (NASDAQ: TMUS), leading chip manufacturer Taiwan Semiconductor Manufacturing (NYSE: TSM), and memory chip giant Micron Technology (NASDAQ: MU), all of which look like solid 5G plays to add to your portfolio this summer. Probably not, which is why T-Mobile looks so compelling today.
Those following along with T-Mobile US, Inc. (NASDAQ:TMUS) will no doubt be intrigued by the recent purchase of shares...
(Bloomberg) -- SoftBank Group Corp. shares just reached a new high this year, propelled by a series of buybacks that have seen the stock recoup the losses suffered during the coronavirus market rout.The stock rose 2.6% on Friday to 5,778 yen ($54), the highest since July 2019. That’s more than double the level of a March low.The recovery is something of a vindication for CEO Masayoshi Son, who unveiled plans to sell 4.5 trillion yen of assets to reduce debt and bankroll record share buybacks. Son has frequently complained that SoftBank’s shares, even at their peak, trade at less than the value of its portfolio of investments.SoftBank has also had a series of wins over the same period, finally solving the puzzle of Sprint Corp. and T-Mobile Inc. with their merger completed in April, and seeing a welcome return to successful investment bets as online home-insurance provider Lemonade Inc. surged as much as 86% in its U.S. IPO. Thursday.“The steps being taken to improve its balance sheet, such as repurchase of its debt, are being recognized,” said Tomoaki Kawasaki, a senior analyst at Iwaicosmo Securities Co.SoftBank shares have had a volatile run over the past year as portfolio companies such as WeWork ran into trouble and the coronavirus hammered many of its businesses. That triggered a record 1.36 trillion yen operating loss for the last fiscal year. Optimists believe the worst is over for the company.“After the trillion-yen level writedowns last quarter, it’s not possible that it’ll be worse than that,” said Kawasaki.Citigroup Global Markets analyst Mitsunobu Tsuruo raised his price target for the stock by 100 yen to 7,200 yen on Wednesday, lifting his expectations for the company’s forthcoming first-quarter earnings and noting that there is “still plenty of room for the shares to advance” given the buybacks and steps to clean up its balance sheet.SoftBank has already repurchased 500 billion yen of shares based on a resolution adopted March 13, separate to its 2 trillion yen pledge. Under that larger program, it has already formally announced plans to buy 1 trillion yen of buybacks through next March, with Son indicating he hoped to carry out the full amount. Investors can “feel confident” in buying and holding SoftBank shares until the buybacks are 90% done, according to Atul Goyal, senior analyst at Jefferies Group. Whether the shares can continue their increase depends on future catalysts, Iwaicosmo’s Kawasaki said.“The shares will need another catalyst that boosts shareholder value, such as the second Vision Fund,” he added.Son said in May that SoftBank will use its own cash for the second Vision Fund for now, until an improved investment performance attracts outside partners.(Adds Jefferies comment in fourth-last paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Zacks Analyst Blog Highlights: Ciena, United States Cellular, T-Mobile US and Nokia
T-Mobile (TMUS) fulfills a major commitment made to the Department of Justice and the Federal Communications Commission as part of the merger.
A handful of corporate behemoths has skyrocketed YTD. Some of these stocks carry a favorable Zacks Rank and have rallied more than 20% YTD.
T-Mobile (TMUS) has an impressive earnings surprise history and currently possesses the right combination of the two key ingredients for a likely beat in its next quarterly report.
The contrasting characteristics highlight the vagaries of the market and the turbulent economic conditions that appear to be the "new normal" post the virus outbreak.
T-Mobile US Inc. (NASDAQ: TMUS) announced today that as the supercharged Un-carrier continues its post-merger close efforts to build America’s best 5G network and bring the value of new T-Mobile to consumers across the United States, it has completed its previously announced divestiture of Sprint’s prepaid wireless business to DISH Network Corporation (NASDAQ: DISH). The divestiture fulfills a commitment that T-Mobile and Sprint made to the Department of Justice and to the Federal Communications Commission as part of their merger process.
New data released today from Opensignal, a leader in measuring consumer mobile experiences, ranks the T-Mobile (NASDAQ: TMUS) 5G network first for 5G availability in its USA 5G User Experience Report, meaning Un-carrier customers get a 5G signal more often than customers on any other network. More than twice as often as AT&T and 56 times more often than Verizon. And following the merger of T-Mobile and Sprint, all Sprint 5G customers now have access to T-Mobile’s nationwide 5G, so they also benefit from the most available 5G network.
Verizon (VZ) will power Cooler Screens' digital media and advertising platform through LTE connectivity, IoT condition-based monitoring, integrated service desk and field services support.
(Bloomberg Opinion) -- It’s good that big brands like Verizon Communications Inc. and Unilever NV are pulling ads from Facebook Inc.As my colleague Sarah Halzack has written, the way to make the adtech giant change its approach to tackling hate speech and misinformation is to target how it makes money. (A similar effort worked at Google’s YouTube unit.) But Mark Zuckerberg and co. will still make $77 billion this year from advertisers. If brands really believe in this crusade, they should get off Facebook entirely.On Thursday, Verizon became one of the biggest brands to announce it will pull ads from Facebook in July, joining the likes of Patagonia Inc. and Recreational Equipment Inc. in a month-long campaign called Stop Hate For Profit. The movement is being led by groups such as the Anti-Defamation League and Color of Change, and is channeling momentum of the Black Lives Matter movement to realize real change. On Friday, Ben & Jerry’s, Hellman’s and Dove parent Unilever announced it would halt ads on Facebook and Twitter Inc. in the U.S. for the rest of 2020.It’s a commendable effort to force Facebook to remodel its practices, but there’s a business incentive too: An ad appearing alongside a conspiracy theory is not a good look, particularly if a slice of the revenue goes to the maker of the video. A group of brands with a combined advertising budget of $97 billion is already pushing for better controls. More of them should follow Verizon’s lead, not least the handful of other telecoms operators in the U.S.Arguably, the main reason Verizon even needs to advertise on Facebook is because its rivals AT&T Inc. and T-Mobile U.S. Inc. are both doing so too. Since competitive intensity has been significantly reduced by pandemic lockdowns, now seems a particularly good time for mobile operators to cut marketing spend.If firms are serious about upping the pressure on Zuckerberg, however, they should abandon their presence on the social network completely by deleting their Facebook pages. That might seem like a brand cutting off its nose to spite its face, but as long as it has a Facebook page, then the advertising boycott looks like an empty threat.That’s because the ad spend will ultimately return after the boycott. There’s little point in maintaining a corporate Facebook presence without paying to promote content, due to the limitations of what’s known as organic reach, or how many users see a post without a company or individual paying to get it in front of them. Without paid promotion, just 1% of a page’s followers are likely to see a given post, according to digital agency Jellyfish. It wasn’t always this way. In the early days, Facebook lured brands by showing how many customers they could reach by setting up a page. Then the Menlo Park, California-based firm changed its algorithm so that very few people would see a company’s posts if it didn’t pay for promotion. It was the classic Silicon Valley bait-and-switch. UniCredit SpA, Italy’s biggest bank, bit the bullet and ditched its Facebook presence a year ago. It had already stopped paying for Facebook ads, which meant that very few of the 546,000 followers of its UniCredit Italia page actually saw its content — perhaps just 5,500. Its resolve is so far holding: It hasn’t returned to the social network yet.Being on Facebook can also present more of a risk than an opportunity, especially for an incumbent brand like a bank or telecoms giant. UniCredit’s followers probably represented a significant cross-section of its consumer banking customers, which therefore served as a handy list of people for challenger banks like N26 or Revolut to target with ads and try to steal away. Plus, if a company has a Facebook page, it still has to regularly post new content and interact with customers — both of which cost money. If it doesn’t, the page will likely fill up with customer complaints, which would show up at the top of online search results. The business reasons for big-spending incumbents to leave Facebook might be almost as good as the ethical ones.Zuckerberg needs financial incentives to be more proactive about managing content effectively, partially because his lodestar has long been user engagement. And more polarizing content drives more user engagement. The Wall Street Journal reported in May that a report commissioned by Facebook in 2018 found the platform often did aggravate polarization and tribal behavior, yet the firm decided not to tackle the issue.Regulating content directly often means impinging on thorny free speech issues. It’s a troublesome affair. Far better to find market-based, commercial incentives that mean the issue must be taken seriously. Will enough brands use these to make a meaningful difference? Probably not, but they have the opportunity to give Facebook the firmer poke it needs.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Companies In The News Are: DELL, VMW, AAPL, TMUS, CZR.
Here are four top-ranked S&P 500 listed large cap tech stocks that have shown great resiliency amid coronavirus pandemic courtesy of solid fundamentals.
(Bloomberg) -- SoftBank Group Corp. founder Masayoshi Son ended his company’s annual shareholder meeting with a surprise Thursday by announcing he’s stepping down from the board of Chinese e-commerce titan Alibaba Group Holding Ltd.The billionaire said his departure shouldn’t be interpreted as signifying any disagreements, even though Alibaba co-founder Jack Ma is quitting SoftBank’s board at the same time. Ma and Son have maintained a close friendship since the Japanese entrepreneur was an early investor in Alibaba and helped it along to its current value of roughly $600 billion, calling it the crown jewel of SoftBank’s portfolio.“It’s not like we had a fight,” Son said during the virtual shareholder meeting. “This was perfectly amicable.”While the mutual departures are unlikely to have an immediate impact on either company, they mark the end of an era. The two men are among the most successful entrepreneurs of their generation and have been able to rely on each other’s advice for decades. Son was on Alibaba’s board as it went public in 2014 in the largest initial public offering in history. When SoftBank ran into trouble with investment losses this year, Son was able to use his Alibaba stake to raise much-needed capital.Read more: Alibaba Co-Founder Jack Ma to Quit SoftBank’s Board in June“The joint board membership was a big positive for both companies because it gave them a way to benchmark their respective business models,” said Michiaki Tanaka, a business school professor at Rikkyo University in Tokyo. “Not having that board-level contact is a big loss.”Alibaba remains Son’s most successful investment by far and SoftBank’s most valuable asset. In early 2000, Son invested $20 million into the then-unknown web portal connecting Chinese manufacturers with overseas buyers, a stake that is now worth more than $150 billion. That spectacular return cemented his reputation as an investor and later helped him raise the $100 billion Vision Fund. Son has previously spoken highly of Ma.“He had no business plan, zero revenue,” Son said about Ma on The David Rubenstein Show. “But his eyes were very strong. I could tell from the way he talked, he has charisma, he has leadership.”Son is known for anointing the entrepreneurs he finds particularly promising as “the next Jack Ma,” and Alibaba has long served as the standard against which he has judged SoftBank’s other startup investments. But that’s also made Son vulnerable to charismatic founders like WeWork’s Adam Neumann, whose many governance transgressions led to the office-sharing firm canceling its initial public offering last year. WeWork, once thought to be worth $47 billion, has lost more than 90% of its value.Son’s recent track record has been spotty. Starting with the WeWork fiasco, he has suffered a string of setbacks at portfolio companies including Wag Labs, Zume Pizza and Brandless Inc. SoftBank lost almost $18 billion writing down the value of its startup companies in the last fiscal year.Still, Son struck an optimistic note at the shareholder meeting Thursday. He began the presentation to investors in typical fashion, reaffirming his conviction that a global digital transformation and the advent of artificial intelligence -- both accelerated during the pandemic -- will help his investments in the likes of TikTok-owner ByteDance Ltd. and British chip designer Arm Ltd.Read more: How Jack Ma Made Rich Capitalists Acceptable in Communist ChinaSoftBank is in the process of offloading 4.5 trillion yen (about $42 billion) of assets to bankroll stock buybacks and slash debt to reassure investors. On Thursday, the company announced a third 500-billion-yen buyback, having completed an earlier one this month.The company this week agreed to sell a stake in T-Mobile US Inc. for as much as $20 billion. Together with the $11.5 billion from issuing contracts to sell Alibaba stock and a sale of stock in its domestic telecom unit, Son’s company has now completed 80% of its envisioned asset unwinding, he said.Son said he was “graduating” from Alibaba’s board. But the two-decade-long relationship produced few cooperative venture of note, even while the two companies were constructing e-commerce empires in their respective markets. In 2010, the two agreed to link their online platforms to allow users of SoftBank’s Yahoo Japan to buy products on Alibaba’s Taobao site, but the project failed to gain momentum. In 2015, Alibaba backed SoftBank’s failed bipedal robotics business.“Following Jack Ma leaving the SoftBank board, Son stepping down from Alibaba is merely a symbolic end of an era,” said Justin Tang, head of Asian research at United First Partners in Singapore. “It will be business as usual for both companies.”A shareholder asked at the Thursday meeting how many of the 88 companies SoftBank’s Vision Fund currently has on its books will be the next Alibaba. Son’s answer was that there are one or two “mini-Alibabas.”(Updates with new share buyback plan in 11th paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
In the latest trading session, T-Mobile (TMUS) closed at $108.43, marking a +1.19% move from the previous day.
(Bloomberg) -- SoftBank Group Corp. offloaded a large chunk of its stake in wireless carrier T-Mobile US Inc. stake at a discount, cementing a series of transactions that could fetch as much as $20 billion for the Japanese investment giant.The Tokyo-based company raised $14.8 billion from a sale of T-Mobile shares to institutional investors, SoftBank said in a statement. The offering of 143.4 million shares was priced at $103 apiece, representing a 3.9% discount to T-Mobile’s record high closing price on Tuesday.SoftBank is set to raise another $4.1 billion through several related deals that will see shares sold to Marcelo Claure, a T-Mobile board member, and other investors, according to the statement Wednesday. The total proceeds would rise to $20 billion if so-called over-allotment options are exercised.The deals are 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.T-Mobile’s controlling shareholder, Germany’s Deutsche Telekom AG, has also been granted the right to buy 101.5 million shares in the U.S. carrier currently held by SoftBank, according to the statement. The stake is worth about $10.9 billion based on Wednesday’s closing price. Deutsche Telekom can exercise its options to buy the stock up to June 2024, according to a T-Mobile filing.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 DealSoftBank 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 Inc. served as financial adviser to T-Mobile’s board.(Updates with details of related transactions from third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
T-Mobile US, Inc. (NASDAQ: TMUS) ("T-Mobile") today announced that the 2020 Cash Mandatory Exchangeable Trust, a Delaware statutory trust (the "Trust"), has priced the private offering of its 2020 Cash Mandatory Exchangeable Trust Securities (the "Trust Securities") for an aggregate purchase price of $1,860,465,000 (the "Offering"). The Trust also granted the initial purchasers of the Trust Securities a 30-day option to purchase up to an additional $139,535,000 aggregate purchase price of the Trust Securities at the initial offering price less the initial purchaser discount. The Offering is expected to close on June 26, 2020, subject to satisfaction of customary closing conditions.
T-Mobile US, Inc. (NASDAQ: TMUS) ("T-Mobile") today announced the pricing of a registered public offering of 143,392,582 shares of its common stock at a price of $103.00 per share (the "Public Equity Offering"). In addition, the underwriters have been granted a 30-day option to purchase up to an additional 10,754,444 shares of T-Mobile common stock at the same public offering price, less underwriting discounts and commissions. The Public Equity Offering is expected to close on June 26, 2020, subject to satisfaction of customary closing conditions.
(Bloomberg Opinion) -- As Japan’s SoftBank Group Corp. unloads about 200 million shares of T-Mobile US Inc., more investors get a chance to own a top-performing stock that had been hogged by insiders. SoftBank’s fire sale isn’t a knock on T-Mobile, but rather a reluctant move by billionaire Masayoshi Son to shore up his own troubled conglomerate. Indeed, his loss will be someone else’s gain. Son took control of Sprint Corp. in 2013 and then spent years pursuing a merger between the beleaguered wireless carrier and its stronger rival, T-Mobile. He finally got his way thanks to the Trump administration’s lax regulators at the Justice Department and Federal Communications Commission. Their focus on America’s standing in the so-called race to 5G, the next generation of wireless connectivity, overshadowed the antitrust concerns. Sprint officially became part of T-Mobile in April, handing SoftBank ownership of about 25% of the combined company; another 44% is owned by Deutsche Telekom AG. Until this week, that left only a small public float for a stock that’s long been the envy of its industry — and will likely continue to be.After the implosion of office-space rental company WeWork Cos. and the Covid-19 pandemic, SoftBank suffered record losses from its investments and is in need of cash. In turn, the company is undertaking a series of complex transactions to exit most of its T-Mobile stake, generating about $20 billion in proceeds. The deal involves a public equity offering, a rights offering to existing shareholders, a private trust vehicle and a call option for Deutsche Telekom to increase its ownership of T-Mobile down the road when its own balance sheet is in better shape. The transactions are structured so that even though more T-Mobile shares will be available to the public, the total number of shares outstanding won’t change. T-Mobile also gets $300 million for playing banker. T-Mobile’s stock price closed at an all-time high of $107.16 on Tuesday. After the market closed, the shares SoftBank is selling priced at $103 apiece, according to a CNBC report.T-Mobile’s subscriber base, revenue and stock price are all expected to continue growing for the foreseeable future at a faster clip than that of its two larger rivals, Verizon Communications Inc. and AT&T Inc. Its consumer appeal comes from offering cheaper data plans on a network that has improved tremendously over the years, as well as a friendlier customer-service experience. Led by a larger-than-life CEO whose magenta wardrobe made him a walking T-Mobile billboard, the company was able to distinguish itself over time as a fun brand in an otherwise drab industry. That CEO, John Legere, left after sealing the Sprint deal and was replaced by Mike Sievert. The SoftBank share sale is also a farewell performance for Braxton Carter, T-Mobile’s pink cowboy hat-wearing chief financial officer, who retires next week. The Sprint merger fundamentally changed the industry by eliminating a low-cost rival that T-Mobile competed with most. T-Mobile’s own porting ratios, a measure of how many customers one carrier steals from another, showed that it was consistently taking a bigger bite out of Sprint’s subscriber base than either Verizon or AT&T’s. Now that the deal is done, T-Mobile would seem to have two options: 1) Given that there’s so much extra capacity on its network to handle more subscribers, it could cut prices even more. That would supercharge its own growth while putting pressure on AT&T and Verizon. 2) Instead, T-Mobile could keep prices flat or even raise them to improve profit margins more immediately, leaving competition more stagnant. The latter option is the less innovative, less consumer-friendly route that was feared by opponents of the Sprint takeover. (T-Mobile’s 13-hour outage on its network last week also doesn’t help to quell the fear that the industry is insufficiently regulated.) Here’s how different T-Mobile’s profitability might look if it were to adopt AT&T’s pricing:In either case, it may be a win-win for investors. T-Mobile executives predict that it will save more than $40 billion in costs due to the Sprint deal, much of which will come from job cuts and shutting stores in overlapping locations (another reason the transaction was criticized). Wireless carriers also rely on costly ad campaigns to promote their networks. The combined T-Mobile-Sprint will now be able to save about $700 million a year just from lower advertising expenses, according to a report earlier this month by Jonathan Chaplin, an analyst for New Street Research.Chaplin expects T-Mobile to pursue the less aggressive avenue of growth, but even then he sees its stock price doubling over the next three to five years. Analysts are generally less optimistic about AT&T and Verizon, as one undergoes a difficult transformation into a communications and entertainment colossus, while the other remains almost singularly focused on 5G with a less-than-ideal set of wireless spectrum. After buying Sprint, T-Mobile’s future looks to be either grow fast or grow faster. Still, this week’s news shows that for a merger pumped up on American 5G zeal and patriotism, the biggest beneficiary just might be a Japanese billionaire short on cash.(Adds pricing information in the fourth paragraph.)This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The expanded business collaboration by CenturyLink (CTL) is likely to minimize disruption and support business continuity amid coronavirus-induced turmoil and market volatility.
21 billion dollars of T-Mobile US stock is up for grabs. Japanese investor SoftBank is unloading two-thirds of its stake in the U.S. phone network. That as it tries to raise 41 billion dollars for a share buyback and debt reduction plan. The moves come after a number of its big tech bets went sour. SoftBank has had to pour billions into struggling office sharing firm WeWork. It also has a stake in German payments firm Wirecard, now mired in scandal over a 2 billion dollar hole in its accounts. Now many of the T-Mobile shares divested will be acquired by T-Mobile itself. It will then sell them on the open market and to private investors. It’s the latest in a string of divestments that have delighted investors. SoftBank shares have more than doubled since mid-March, despite the global stock turmoil. But the dramatic moves have also raised concerns among credit rating agencies about the tech investor’s financial standing.
SoftBank Group Corp <9984.T> unveiled a series of transactions on Monday to divest more than $21 billion (£16.8 billion) worth of stock in U.S. wireless carrier T-Mobile US Inc <TMUS.O>, as it seeks funding for a $41 billion share buyback and debt reduction plan. While the divestments have bankrolled a string of share buybacks, delighting investors including hedge fund Elliott Management Corp, they have raised concerns among credit ratings agencies about the Japanese conglomerate's financial standing.
(Bloomberg) -- SoftBank Group Corp., under pressure to raise capital after record losses in its investment business, is unloading part of its stake in wireless carrier T-Mobile US Inc. in a $21 billion deal.The transaction, along with a plan to sell a 5% stake in its Japanese wireless subsidiary, is part of a broader $42 billion push by SoftBank 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’s shares gained as much as 3% in Tokyo. The Japanese investment giant will now turn its attention to other assets in its portfolio and may pursue an outright sale of part of its stake in Chinese e-commerce giant Alibaba Group Holding Ltd. Son has said $11.5 billion raised from issuing contracts to sell stock in Asia’s largest corporation was a first step toward unwinding more of its holdings.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 company may invest the proceeds in high-quality securities until they are used for buybacks or debt reductions, it added.Read more: SoftBank Wraps Up $4.7 Billion Share Buyback in Three MonthsThe Japanese company is trying to shore up a balance sheet devastated by writedowns that triggered a record 1.9 trillion yen ($18 billion) loss last fiscal year at the Vision Fund. As concerns about investments mounted, Son responded with share repurchases in rapid succession, completing a $4.7 billion buyback program in just three months.As part of a complex series of transactions unveiled Tuesday, T-Mobile will hold a public offering of 133.5 million shares of its common stock, the carrier said in a statement. It also will grant the underwriters 10 million shares. Additionally, T-Mobile intends to sell as many as 30 million common shares to a Delaware statutory trust.Five million shares will be sold to an entity controlled by Marcelo Claure, a SoftBank executive and T-Mobile board member, with funding coming from SoftBank. And T-Mobile will have the right to buy almost 20 million shares. Altogether, as many as 198.3 million shares owned by SoftBank will be transferred.SoftBank secured the stake in T-Mobile US just this year, after U.S. regulators approved the American wireless carrier’s $26.5 billion takeover of Sprint Corp. T-Mobile’s market value is about $132 billion.Read more: SoftBank’s Vision Fund Loses $17.7 Billion on WeWork, Uber (2)T-Mobile stock closed at $106.60 Monday in New York, putting the value of the 198 million shares at about $21 billion. They had been up 36% this year through Monday’s close.Both companies had said earlier they are discussing a possible deal. Even before the transaction, Deutsche Telekom AG was the controlling shareholder of T-Mobile due to how voting rights were structured following the Sprint deal.The stock offering, due to trade June 24, will be 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 served as financial adviser to T-Mobile’s board. SoftBank said it will pay T-Mobile $300 million as part of the transaction and will cover all fees and expenses related to the deal.(Updates with SoftBank’s shares from the third paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
T-Mobile US, Inc. (NASDAQ: TMUS) ("T-Mobile") today announced the intention of the 2020 Cash Mandatory Exchangeable Trust, a Delaware statutory trust (the "Trust") to offer, subject to market and other factors, its 2020 Cash Mandatory Exchangeable Trust Securities (the "Trust Securities") in a private offering (the "Offering"). T-Mobile intends to sell 27,906,977 shares of its common stock (30,000,000 shares if the initial purchasers exercise in full their option to purchase additional Trust Securities) to the Trust. For every share of common stock sold by T-Mobile to the Trust, T-Mobile has agreed to repurchase one share of common stock from a subsidiary of SoftBank Group Corp. ("SoftBank") for consideration equivalent to that received by T-Mobile in its sales. Consequently, the Offering will not involve gain or loss to T-Mobile and will not affect the number of outstanding shares of T-Mobile common stock or T-Mobile’s capitalization.