Softbank to pay $20 billion for a 70 percent stake in Sprint
Softbank and Sprint have reached a deal under which Softbank will pay $20 billion for a 70 percent stake in the wireless telecom operator, according to people close to the situation.
The deal is expected to be announced tomorrow morning. While certain details are still being worked out, the boards of both companies have agreed in principle to the deal and are expected to officially ratify it this evening.
The transaction calls for Softbank to buy $8 billion worth of shares directly from Sprint at a price of $5.25 each and tender for another $12 billion worth of the shares from existing holders at a price of $7.30 a share, a large premium to Sprint's current price. Given the deal's structure, it will not require a shareholder vote.
