SoftBank raises $4.8 billion from T-Mobile share sale, term sheet shows
SYDNEY: Japan's SoftBank raised $4.8 billion from a sale of 21.5 million T-Mobile shares at $224 each, according to a term sheet reviewed by Reuters.
The shares were offered in a price range of $224 to $228 each, the term sheet said.
The final price was around a 3% discount to T-Mobile's closing price on Monday of $230.99.
SoftBank and T-Mobile did not immediately respond to requests for comment from Reuters.
SoftBank will remain T-Mobile's second largest shareholder after the stock sale, behind Deutsche Telekom which is the US company's biggest investor.
SoftBank gets $7.6bn T-Mobile stake windfall, shares soar
The Japanese firm owned 7.52% of T-Mobile, or 85.36 million shares worth about $22.76 billion, according to LSEG data, ahead of the block trade.
SoftBank said in late 2023 it would receive T-Mobile shares worth about $7.59 billion at no additional cost after conditions set out in an agreement made as part of the merger of SoftBank's US telco Sprint and T-Mobile were met.
Bloomberg News reported the share sale earlier.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
6 hours ago
- Business Recorder
‘GTA VI' delay weighs on global videogame market growth, data shows
The global videogame market's growth rate is expected to improve marginally in 2025 from the previous year, according to a report from research firm Newzoo, seen exclusively by Reuters on Tuesday. Analysts and industry experts had projected a surge in industry growth this year due to the expected blockbuster launch of Take-Two's 'Grand Theft Auto VI' and new consoles. However, the delay of the long-awaited title to next year and price hikes to videogame hardware, arising from tariffs, have made consumer spending uncertain. The global videogame market is projected to grow 3.4% to $188.9 billion in 2025, compared with last year's growth of 3.2%, according to the report. 'This forecast reflects concrete changes, hardware cycles, pricing trends, install base growth, and title pipelines,' said Michiel Buijsman, principle analyst at Newzoo. Take-Two Interactive delays 'Grand Theft Auto VI' release to May 26, 2026 Compounded annually, Newzoo expects the market to grow 3.3% till 2027, compared with its earlier forecast of 3.7%. As 'GTA VI' is scheduled to launch in 2026, the industry will most likely see the boost from sales next year along with the release of other premium titles such as Capcom's 'Resident Evil Requiem.' The launch of 'GTA VI' on PC is also expected to carry growth through 2027, the report said. Price increases to Microsoft's Xbox and Sony's PlayStation devices have sparked fears of slower hardware sales as consumers globally grapple with market uncertainty, even as Nintendo's Switch 2 became the company's fastest-selling console. Xbox also unveiled its own handheld console, the Xbox Ally, earlier this month, developed in partnership with ASUS and set to launch in holidays 2025.
Business Recorder
6 hours ago
- Business Recorder
Nissan launches new Leaf in push to revive its electric mojo
TOKYO: Nissan is betting on a new version of its Leaf electric vehicle (EV) to revive its fortunes, having gone from mass-market EV pioneer to laggard since its first model entered showrooms in 2010. The Japanese carmaker's third-generation Leaf was launched on Tuesday and will go on sale in the United States in the autumn, with other regions to follow. But its success is far from certain in the face of significant obstacles. The cars sold in the U.S. will be made at Nissan's factory in Tochigi, Japan, and therefore subject to tariffs. EV demandin the U.S., meanwhile, has cooled as customers clamour for hybrids, which Nissan still does not offer in America. 'There is a high possibility that this is going on sale at the worst possible time, given the imposition of tariffs and the Trump administration's rollback of EV subsidies,' said Koji Endo at SBI Securities. 'If the new Leaf doesn't sell, it will mean big trouble for Nissan.' The price of the new Leaf has yet to be announced, but the previous hatchback styling has been overhauled as a crossover with battery capacity up to 25% more than the previous version. Nissan estimates a maximum range of up to 303 miles in the U.S. with its 75 kWh battery. Nissan plans to reduce stake in Renault, CEO Espinosa tells Nikkei Even with the tariffs, the U.S. price will be competitive, a Nissan spokesperson said. It is difficult to understate the Leaf's symbolic importance to Nissan. It was the world's best-selling EV for years until it was overtaken by Tesla. Introduced by the now-disgraced Carlos Ghosn, it heralded Nissan's desire to play a big role in the electric future. Despite the company's troubles in recent years, it has sold almost 700,000 Leaf vehicles. Chief Executive Ivan Espinosa now faces the difficult task of delivering much-needed cost cuts while continuing to invest in development of new vehicles to refresh its ageing line-up and lack of hybrids in the United States. Espinosa has laid out plans for big cuts, including seven plant closures and 11,000 jobs. That will bring staff cuts to about 20,000, including those announced by his predecessor last year. Nissan reported a net loss of about $4.5 billion in the past financial year and faces 596 billion yen ($4.1 billion) in debt due next year. The new Leaf will also be made at the Sunderland factory in Britain. The Tochigi and Sunderland plants are not expected to be among the closures, though the Oppama factory where the Leaf was first made could be axed.
Business Recorder
7 hours ago
- Business Recorder
US retail sales fall sharply in May
WASHINGTON: U.S. retail sales dropped more than expected in May, weighed down by a decline in motor vehicle purchases as a rush to beat potential tariffs-related price hikes ebbed, but consumer spending remained supported by solid wage growth. Retail sales fell 0.9% last month after a downwardly revised 0.1% dip in April, the Commerce Department's Census Bureau said on Tuesday. Economists polled by Reuters had forecast retail sales, which are mostly goods and are not adjusted for inflation, decreasing 0.7% after a previously reported 0.1% gain in April. Estimates ranged from a 1.7% drop to a 0.3% increase. Sales last month were also held down by lower receipts at service stations because of a decline in gasoline prices. President Donald Trump's sweeping tariffs have raised fears over global growth, restraining oil prices. But hostilities between Israel and Iran have boosted oil prices. Unseasonably cooler weather likely also hurt sales. Federal Reserve officials prepared to start a two-day policy meeting on Tuesday. The U.S. central bank was expected to keep its benchmark overnight interest rate unchanged in the 4.25%-4.50% range while policymakers monitor the economic impact of tariffs and tensions in the Middle East. US inflation edges up as Trump tariffs flow through economy A 25% duty on imported motor vehicles and trucks came into effect in April. Retail sales excluding automobiles, gasoline, building materials and food services increased 0.4% in May after an upwardly revised 0.1% fall in April. These so-called core retail sales, which correspond most closely with the consumer spending component of gross domestic product, were previously reported to have dropped 0.2% in April. Consumer spending, which accounts for more than two-thirds of the, economy slowed sharply in the first quarter, and could remain moderate in the April-June quarter. The Atlanta Fed is currently forecasting GDP rebounding at a 3.8% annualized rate in the second quarter. The anticipated surge will largely reflect a reversal in imports, which have fallen sharply as the frontloading of goods fizzled. The economy contracted at a 0.2% pace in the January-March quarter. Downside risks to consumer spending are rising. The labor market is slowing, student loan repayments have resumed for millions of Americans and household wealth has been eroded amid tariff-induced stock market volatility. The uncertain economic environment could lead to precautionary saving. 'Past experience suggests the biggest price rises will come in July, though the full impact of the tariffs likely will emerge across the whole of the remainder of the year,' said Samuel Tombs, chief U.S. economist at Pantheon Macroeconomics. 'That will weigh on growth in real incomes at the same time as a softening labor market will make people cautious with discretionary spending. Meanwhile, households no longer have 'excess savings' or strong growth in stock prices to spur them to spend.'
