Softbank to buy 70% of Sprint for $20.1B


Japanese operator Softbank will purchase 70 percent of Sprint Nextel in a deal valued at $20.1 billion. The move could change the competitive landscape of the U.S. wireless market by strengthening Sprint financially. The Softbank deal, which had been percolating for the past several days, became official early Monday morning. Softbank said it will pay $12.1 billion directly to Sprint shareholders and will pay another $8 billion for new equity in Sprint at $5.25 per share. Under the terms of the deal, around 55 percent of current Sprint shares will be exchanged for $7.30 per share in cash, and the remaining shares will be converted into shares of a new publicly traded entity, New Sprint. After the deal closes Softbank will own around 70 percent and Sprint shareholders will own 30 percent. The companies said they expect the deal to close in mid-2013. FierceWireless has more. Article

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