Softbank buys 78% of Sprint as deal reaches its end

Softbank buys 78% of Sprint as deal reaches its end
On Wednesday, Sprint and SoftBank announced the completion of the Japanese telecom company's purchase of 78% of Sprint for $21.6 billion. Sprint stockholders will receive $16.6 billion while $5 billion will be injected into Sprint. 72% of Sprint's common stock will be acquired by SoftBank for $7.65 in cash while the remaining shares are being converted into common stock of a new company called Sprint Corporation. Current Sprint holders were given the option for receiving a prorated amount of cash or one share in the new company for each Sprint share owned.

Those who chose cash will receive $5.647658 in cash and 0.261744048 share of Sprint for each old Sprint share owned. Current Sprint stockholders will now own 22% of a more financial secure Sprint, with SoftBank owning the remaining 78%. The new Sprint Corporation will keep the "S" ticker symbol on the NYSE and starting today, the shares will trade on a "when-issued" basis on the NYSE. "When-issued" trading is traditionally offered by the NYSE after a merger closes, to allow stockholders of the acquired company to sell the shares they will be receiving based on the terms of the deal, before those shares are issued.

It's no surprise that SoftBank founder, Chairman and CEO Masayoshi Son, will become Chairman of the Board of the new Sprint while Sprint CEO Dan Hesse will hold the same position in the new company.

source: Sprint, SoftBank via Engadget

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