Deutsche Telekom sells its Dutch arm
- ByAyushi Ray | September 8, 2021
Deutsche Telekom sells its Dutch arm. As a result of the two deals announced on Tuesday, Deutsche Telekom will raise its stake in T-Mobile US by 5.3% to 48.4%, bringing chief executive officer Tim Hoettges closer to his goal of securing direct control over the $170 billion US telecoms operator. SoftBank will in return receive cash and a 4.5% stake in Deutsche Telekom, establishing a direct shareholding relationship after the Japanese group sold its US Sprint unit to T-Mobile in a deal that closed in early 2020. The latest transactions seek to lock down that deal by bringing Deutsche Telekom within touching distance of majority ownership over T-Mobile US—which accounts for three-fifths of group sales and is its most profitable unit.
As part of the complex transaction, Deutsche Telekom will trigger option agreements, enabling it to lock in an average price of $109 per share for the 65 million T-Mobile shares it is acquiring, below last week’s closing price of $136. Deutsche Telekom had options to lift its stake in T-Mobile US above 50%, Hoettges told a briefing, either by exercising further options or sitting out the $60 billion in share buybacks that the US company plans in the coming years.
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