Jim Cramer Likes T-Mobile Stock
T-Mobile priced a discounted sale of its shares held by Japan's Softbank.
T-Mobile priced the sale at $103 each, a 4% discount to the stock's Tuesday closing price, but noted that the transaction itself won't affect that number of outstanding shares or the group's market capitalization. T-Mobile will, in fact, buy most of Softbank's divested shares and sell them into the open market.
Softbank acquired the T-Mobile shares after the carrier $26 billion merger with Sprint Corp. was approved earlier this year. Softbank , which is lead by its founder and CEO Masayoshi Son, first invested $20 billion in Sprint in 2013.
As part of the overall deal, however, Deutsche Telekom AG, the German carrier which owns 43.6% of T-Mobile, also has the option to purchase around 101.5 million of the shares on offer, with a value of around $11 billion, between now and June of 2024.
The move will rid Softbank of its 24.6% stake in T-Mobile, while raising around $15 billion for the troubled investment group as continues to dump assets and trim debts. Additional sales could raise another $4.1 billion once the deal is ultimately closed.
Jim Cramer tweeted about the sale, asking if it could be the next Regeneron and Blackrock and then said, "I bet it is."
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