BERLIN — Deutsche Telekom is paying more than $7 billion to raise its stake in its U.S. unit T-Mobile under a share-swap deal with Japan’s SoftBank Group, CEO Tim Hoettges said on Tuesday.
As part of the complex transaction, Deutsche Telekom will exercise option agreements, enabling it to lock in an average price of $109 per share for the T-Mobile shares it is acquiring, below last week’s closing price of $136.
SoftBank will in return acquire a 4.5% stake in Deutsche Telekom, becoming its second largest shareholder after the German state. SoftBank has agreed not to sell its shares before the end of 2024, Hoettges said. (Reporting by Douglas Busvine, editing by Emma Thomasson)