Jim Cramer Likes T-Mobile Stock

Katherine Ross

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."

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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