Softbank has completed the $21.6 billion acquisition of Sprint, assuming they are approved by the FCC. Softbank will now own 78% of the new Sprint Corporation. Sprint’s equity holders will own around 22%. The deal was announced last fall, but there was a setback when Dish came along and made an offer. Dish had also made a bid for Clearwire, a company that Sprint made a bid for. Clearwire shareholders approved of Sprint’s buyout already. Dan Hesse will remain as the CEO of Sprint. Softbank’s Masayoshi Son will become the chairman of the board of directors.
Of the $21.6 billion acquisition, $16.6 billion would be distributed to Sprint’s stockholders. Around $5 billion will be spent to strengthen Sprint’s balance sheet. Sprint’s stockholders voted to approve the transaction at a meeting that took place on June 25, 2013. Around 72% of current Sprint shares are being acquired by Softbank for $7.65 per share in cash. The remaining shares will be converted into shares of a new publicly traded company called Sprint Corporation. Each Sprint stockholder will have the option to elect to receive on share of common stock in the new company or elect to receive cash subject to proration.
Sprint Corporation will be listed and traded on the New York Stock Exchange (“NYSE”) under the ticker symbol, “S.”