Status: 07.09.2021 9:51 a.m.
Deutsche Telekom is concentrating heavily on the lucrative mobile communications subsidiary T-Mobile US. Instead, the group has now sold its business in the Netherlands.
Focus on the USA: Deutsche Telekom is investing around five billion dollars in its own US subsidiary, T-Mobile US. This increases the DAX company’s stake in the fast-growing wireless communications company in the USA to 48.4 percent.
Goal: 50 percent
So far, Telekom holds 43.2 percent of the US subsidiary, which merged with its smaller competitor Sprint last year. This previously belonged to the Japanese subsidiary SoftBank. Through a voting rights agreement, Telekom can consolidate the US subsidiary’s profits on its balance sheet and thus benefit from the growth in the US wireless communications business. Telekom boss Tim Höttges had only announced to his shareholders in May that the goal was to exceed the 50 percent mark.
SoftBank becomes the second largest shareholder
In the transaction, 225 million new treasury shares will be issued to SoftBank at EUR 20 per share. In return, Telekom receives around 45 million T-Mobile US shares at an average price of $ 118 per share. Marcelo Claure from SoftBank is to move into the supervisory board. The cooperation promises value enhancement potential for both companies, said Höttges. The technology investor SoftBank also holds stakes in corporations such as Uber and Alibaba. Through a share swap with Telekom, the Japanese holding company rises to become the second largest private shareholder in Telekom, with a share of 4.5 percent.
Telekom has freed up the funds for further entry into the US mobile communications business by withdrawing from its involvement in the Netherlands. Its subsidiary T-Mobile Netherlands, which Telekom owns together with Tele2, is being sold to financial investors Apax and Warburg Pincus for around five billion euros. Upon completion of the transaction, Deutsche Telekom will receive around 3.8 billion euros.
Growth fantasy makes T-Share rise
In the financial market, Telekom’s stronger focus on its US business and increased growth potential are well received. The T-share in the DAX rose in the morning by almost three percent to 18.40 euros. The stock had developed worse than the DAX in the past few weeks.