SoftBank Offer For Sprint Increased To $21.6 Billion

SoftBank Offer For Sprint Increased To $21.6 Billion

The SoftBank offer for Sprint was increased to $21.6 billion from $20.6 billion as the company increased the stakes in its battle against Dish the acquisition of the mobile service provider. Shareholders will receive a bigger value with the amended merger agreement, according to the company.

The company will increase its cash allocation for Sprint stockholders by $4.5 billion, which increases the cash consideration for stockholders of Sprint to $16.54 billion. The new offer will also increase the stake of the company in Sprint to around 78 percent from the 70 percent in the previous offer.

Masayoshi Son, the CEO and chairman of SoftBank, indicated that the amendment on the agreement will provides bigger upfront cash to the stockholders of Sprint. This comes as the company aims to maintain the capitalization of the mobile service provider to enhance its position in the US market. The SoftBank offer for Sprint provides a considerable value to the stockholders of Sprint as well as the opportunity to obtain the value within a few weeks time. The offer comes without the potential risks linked to other similar transactions, Son added.

Discussions of the initial $20.6 billion SoftBank offer for Sprint started in October. However, Dish came in and made a counteroffer worth $25.5 billion as the deal between Sprint and SoftBank was about to be realized. This resulted to a debate between the two companies, each claiming to have the best offer for the mobile service provider.

Shareholders of Sprint were set to vote on the takeover of SoftBank however a new deadline was made following the revision of the merger agreement to give Dish the opportunity to provide its best offer for the company. The new deadline was set on June 18.

Dish has yet to release a statement on the revision of the SoftBank offer for Sprint.

Posted by James Fried on Tuesday June 11 2013, 8:33 AM EST. Ref: CNET. Link. All trademarks acknowledged. Filed under Finance. Comments and Trackbacks closed. Follow responses: RSS 2.0