T-Mobile US Inc (TMUS) May Raise Nearly $2 Billion By Selling 66M Common Shares

Posted Nov 12, 2013

T-Mobile US Inc (NYSE:TMUS) has announced on Monday that they could bring in nearly $2 billion for spectrum purchases.  T-Mobile is going to sell 66.15 million common shares (around 9% of existing shares outstanding).  T-Mobile would be using the proceeds to buy airwaves to increase their network capacity for wireless data services.

Deutsche Telekom (DT), a 74% owner of T-Mobile, wrote on Twitter that their stake would be cut to 67% after the sale takes place, but they will not be selling their shares.  Based on T-Mobile’s Monday closing price of $26.97, the telecommunications company would generate $1.96 billion based on the number of shares sold.  This deal includes an offer of 6.6 million extra shares for the underwriters.

T-Mobile investors were concerned about the dilution of the value of its shares when the company announced on November 5th that they could raise money for spectrum in an equity offer.

T-Mobile said that they have 728.7 million shares outstanding, including DT’s stake.  T-Mobile’s other shareholders have around 190 million shares.

Morgan Stanley, Goldman, Sachs, J.P. Morgan, Credit Suisse, and Deutsche Bank are the joint book-running managers for the offering.

[Source: Reuters]