Softbank enters into final talks with Deutsche Telecom over T-Mobile bid Softbank [TYO: 9984] has entered into final talks with Deutsche Telecom and other relevant parties involved following the group’s decision to buy a majority stake in T-Mobile US [NASDAQ: TMUS] via its unit Sprint[NASDAQ: S], according to Nihon Keizai Shimbun.
The report which did not cite sources, said Softbank was initially considering the acquisition via a share swap, but it is now considering a cash offer in line with Deutsche Telecom's preference. The German telecoms group is expected to agree with the cash offer.
Softbank is expected to finance the acquisition worth more than USD 20bn by bank loans. To this end, the Japanese mobile telecoms group has already started discussions with financial institutions, the report said.
At the end of September 2013, Softbank had JPY 8.84trn in interest-bearing debt, a 2.4-fold increase over the level at the end of March. The group’s interest payments on outstanding loans and bonds will total around JPY 300bn for the year ending March 2015.
Source Nihon Keizai Shimbun