SoftBank Gains 5% Boost In Tokyo-Listed Shares With $7.6B Worth T-Mobile Shares
Portfolio Pulse from Benzinga Neuro
SoftBank Corp (OTC:SFBQF) is set to receive $7.6 billion worth of T-Mobile US Inc (NASDAQ:TMUS) shares, resulting from an agreement related to the Sprint and T-Mobile merger. This transaction doubles SoftBank's stake in T-Mobile US to 7.64%, significantly increasing its portfolio of listed assets and boosting its Tokyo-listed shares by 5%. Despite past investment setbacks, this deal improves SoftBank's internal rate of return on its Sprint investment to 25.5%.
December 27, 2023 | 7:37 am
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NEUTRAL IMPACT
T-Mobile US is involved in a transaction with SoftBank, issuing 48.75 million shares, which increases SoftBank's stake to 7.64%.
While the transaction is beneficial for SoftBank, the direct impact on T-Mobile US's stock is less clear in the short term, as the issuance of new shares could potentially dilute existing shareholders but also reflects a strengthened relationship with a significant investor.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
SoftBank's Tokyo-listed shares rose 5% following the announcement of receiving $7.6 billion in T-Mobile US shares, doubling its stake to 7.64%.
The increase in SoftBank's stake in T-Mobile US is a direct equity action that significantly enhances its asset base and attractiveness to investors, likely leading to a positive short-term impact on its share price.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100