Deutsche Telekom Acquires 6.7M T-Mobile US Shares at Discount

Deutsche Telekom has announced the acquisition of approximately 6.7 million additional shares in its subsidiary, T-Mobile US (TM US). These shares are being obtained through call options on TM US shares originally held by SoftBank of Japan, pursuant to an agreement made in June 2020. The exercise price of $101.46 per TM US share has been adjusted to $99.51 to reflect cumulative dividend payments totaling $1.95 per share since the agreement’s inception.

This transaction allows Deutsche Telekom to secure the shares at a substantial discount—approximately 45% lower than the current market price of $179.82 per TM US share as of June 7, 2024. Upon completion, these additional shares will increase Deutsche Telekom’s majority stake in T-Mobile US, representing approximately 0.6% of the company’s outstanding shares.

This move marks the utilization of all 44.9 million fixed-price options received from SoftBank, further strengthening Deutsche Telekom’s position in T-Mobile US under favorable terms.

The release contains forward-looking statements regarding future events, based on current management expectations. These statements involve inherent risks and uncertainties, including market conditions, regulatory changes, and operational impacts, which could materially affect actual results. Deutsche Telekom does not undertake any obligation to update these statements in light of new information or future developments.

In addition to IFRS figures, Deutsche Telekom presents alternative performance measures like EBITDA and adjusted earnings per share, which should be considered alongside IFRS data but are not governed by IFRS or other generally accepted accounting principles.

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