Softbank Sells $21 Billion in T-Mobile Stock; Here's Why You Should Gladly Buy the Shares
Shares of T-Mobile (NASDAQ: TMUS) were temporarily lower Monday night and Tuesday morning, after the company revealed that it would be facilitating a $21 billion stock sale from large shareholder Softbank (OTC: SFTBY). To recap, Softbank was the majority owner of Sprint, which merged with T-Mobile on April 1, giving Softbank 24.6% ownership of the "new" T-Mobile.
For the sale, T-Mobile will offer over 133 million shares to the public and another 10 million shares to underwriters of the share sale, and it will also sell about 30 million shares to a Delaware trust that won't be subject to registration. T-Mobile will also repurchase 19.75 million shares itself, and distribute them to existing shareholders in the form of rights to purchase 0.05 shares or each share owned by existing shareholders, exerciseable before July 27.
Source Fool.com
