Today, CNBC is reporting that Japanese telecom company, Softbank has purchased a 70% stake in America’s third-largest wireless telecom company.
Softbank will pay $20 billion in the deal, says CNBC, who cites people close to the situation.
The deal is expected to be announced tomorrow morning.
While several aspects of the deal are still being worked out, CNBC says, “the boards of both companies have signed off on a transaction under which Softbank will buy $8 billion worth of shares directly from Sprint and tender for another $12 billion worth of the shares from existing holders.”
Softbank is gaining this stake in Sprint at a premium. CNBC reports, the price of the offer is $7.30 a share, a large premium to Sprint’s current price. Because of the deal’s structure, it will not require a shareholder vote.
Last week it was speculated that Japanese telecom giant, Softbank, was interested in purchasing a majority stake in Sprint.
In an internal memo last week, Sprint’s CEO, Dan Hesse, advised employees to continue working and “please stay focused on delivering strong fourth quarter results.”