SoftBank Ups Bid For Sprint To $21.6 Billion
SoftBank has announced that they have made a revised deal to acquire Sprint at a price of $21.6 billion. This is up $1.5 billion from SoftBank’s previous offer. SoftBank said that through the amended deal, an extended $4.5 billion of cash will go towards existing Sprint shareholders. SoftBank is currently in a bidding war with Sprint.
Sprint shareholders will get $1.48 more per share in cash ($5.50 instead of $4.02). SoftBank will own more of the combined company at 78% rather than 70%. This will also mean that Sprint will have less cash to work with, which could be used for enhancing their infrastructure.
Sprint believes that their board committee found it unlikely that Dish Networks will be able to put together a better offer. However, Dish is being given until June 18th to do so. Dish Network lined up $9 billion in financing last month for their bid.
“We have expended substantial time and energy engaging with DISH over the past nine weeks, including an extensive due diligence process, but these efforts did not lead, in the Special Committee’s view, to a proposal that was reasonably likely to lead to a proposal superior to SoftBank’s,” stated Sprint board member Larry Glasscock.
Dish said that they believe Sprint has tremendous value and they will analyze SoftBank’s revised bid as they consider their strategic options.