Japanese mobile carrier Softbank Corp said Monday it had reached an agreement to pay 20.1 billion dollars for 70 per cent of shares in Sprint Nextel Corp, the third-largest US mobile company.
The deal will create one of the world's largest communications
groups, with a total of 90 million mobile phone subscriptions.
Softbank, the vendor of Apple Inc's iPhone smartphones in Japan,
taking advantage of the yen's appreciation, aims to expand its
business through the acquisition in the US market.
Softbank will pay 8 billion dollars for newly issued Sprint stock
and 12.1 billion dollars for additional shares in the market, the
company said.
The deal is expected to complete the purchase by in mid-2013,
Softbank said.
Four banks are making arrangements to provide loans for the
company's acquisition, with Mizuho Corporate Bank shouldering 700
billion yen (8.9 billion dollars), Sumitomo Mitsui Banking Corp 500
billion yen, the Bank of Tokyo-Mitsubishi UFJ 300 billion yen and
Deutsche Bank 100 billion yen, the Kyodo News agency said, citing
unnamed sources.
"Our track record of innovation, combined with Sprint's strong
brand and local leadership, provides a constructive beginning toward
creating a more competitive American mobile market," Softbank
chairman and chief executive Masayoshi Son said.
Sprint chief executive Dan Hesse said, "This is a transformative
transaction for Sprint that creates immediate value for our
stockholders, while providing an opportunity to participate in the
future growth of a stronger, better capitalized Sprint going
forward."
Softbank became Japan's third-largest mobile carrier by acquiring
Vodafone Group's operations in the country in 2006.
Shares in Softbank plunged 5.3 per cent to 2,263 yen on Monday.
