SoftBank kicks off US$21 billion sale of T-Mobile shares

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SoftBank kicks off US$21 billion sale of T-Mobile shares
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SoftBank Group Corp unveiled a series of transactions on Monday to divest more than US$21 billion worth of stock in U.S. wireless carrier T-Mobile ...

SoftBank Group Corp unveiled a series of transactions on Monday to divest more than US$21 billion worth of stock in U.S. wireless carrier T-Mobile US Inc, as it seeks funding for a US$41 billion share buyback and debt reduction plan.

SoftBank's shares have more than doubled since the middle of March, despite the economic uncertainty fueled by the COVID-19 pandemic, as CEO Masayoshi Son moves to shed or trim its stakes in other companies such as Alibaba Group Holding.While the divestments have bankrolled a string of share buybacks, delighting investors including hedge fund Elliott Management Corp, they have raised concerns among credit ratings agencies about the Japanese conglomerate's financial standing.

Many of the T-Mobile shares divested by SoftBank were acquired by T-Mobile itself, which will in turn sell them on to the open market and private investors. SoftBank Chief Operating Officer Marcelo Claure will acquire more than US$500 million of T-Mobile stock, according to regulatory filings.

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