It’s been a big month for T-Mobile and Sprint, who received the green light from a judge to move forward with their $26 billion merger.
Judge Victor Marrero wrote earlier this month, “The resulting stalemate leaves the Court lacking sufficiently impartial and objective ground on which to rely in basing a sound forecast of the likely competitive effects of a merger.”
The two companies have agreed to amend their merger deal agreement to give Deutsche Telekom, the majority owner of T-Mobile, a higher ownership stake in the new combined company.
According to the announcement, SoftBank and Deutsche Telekom will hold 24% and 43% of shares in the newly combined company, respectively.
Common shareholders won’t see a change in the exchange ratio, which is 9.75 Sprint shares for 1 T-Mobile share.
SoftBank however, who owns the more than 80% of Sprint, will see an exchange ratio of 11 Sprint shares for each T-Mobile share, the companies both said. SoftBank agreed to surrender about 48.8 million T-Mobile shares it will gain in the merger after the transaction is complete.
SoftBank and Deutsche Telekom will hold 24% and 43% of shares in the newly combined company, respectively, according to the announcement.
T-Mobile said this week that it plans to close the merger by April 1.
Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.