Sprint Corp. and T-Mobile US Inc. have amended their original merger terms to give Deutsche Telekom AG a slightly higher ownership stake in the combined company.
Deutsche Telekom, T-Mobile’s parent, and SoftBank Group Corp., Sprint’s majority owner, are expected to hold approximately 43% and 24%, respectively, of fully diluted New T-Mobile shares, the wireless carriers announced Thursday afternoon. Public shareholders will own the remaining 33%. The new terms will not change the original merger price of $26.5 billion.
SoftBank agreed to surrender about 48.8 million T-Mobile (Nasdaq: TMUS) shares it will gain in the merger after the deal closes. As a result, the Japanese tech giant, which owns more than 80% of Sprint (NYSE: S), will see an exchange ratio of approximately 11 Sprint shares for each T-Mobile share, an increase from the original 9.75 shares.