Sprint and SoftBank Update Deal Terms – Sprint Disses Dish

Posted by at 10:40 am on June 11, 2013

Sprint and SoftBank today announced an amendment to their original merger agreement that makes the deal more attractive to current Sprint investors.

Chiefly, SoftBank is upping the amount of cash it will pay to investors by $4.5 billion to a total of $16.64 billion. The amount of cash being pumped into the front-end of the deal is being offset by a $3 billion reduction in the $4.9 billion investment SoftBank planned to make in New Sprint after the acquisition was completed, as well as new financing on SoftBank’s part. The companies together believe that reworking the finances is a win for Sprint’s shareholders and reflects Sprint’s Network Vision progress and profitability improvements.

However, once the deal is done, Sprint’s current shareholders will have 22% ownership of the company, and SoftBank will have 78%. Under the previous terms, SoftBank would have had a 70% stake in Sprint. Separate from altering the SoftBank transaction terms, Sprint today also announced that its Special Committee evaluating Dish Networks’ proposal has concluded that Dish’s deal is no good. “We have expended substantial time and energy engaging with Dish over the past nine weeks, including an extensive due diligence process, but these efforts did not lead, in the Special Committee’s view, to a proposal that was reasonably likely to lead to a proposal superior to SoftBank’s,” said Sprint.

In light of these changes, Sprint has delayed its planned June 12 shareholder vote to June 25. Most U.S. regulatory bodies, including the Justice Department, SEC, and FBI, have approved SoftBank’s proposed equity acquisition of Sprint. It is now awaiting review from the Federal Communications Commission.

Leave a Reply

Sign Up For Our Newsletter

Sign up to receive breaking news
as well as receive other site updates

Enter your Email

Preview | Powered by FeedBlitz

Log in

Copyright © 2008 - 2023 · StreetCorner Media , LLC· All Rights Reserved ·