Deutsche Telekom lifts T-Mobile US stake

Deutsche Telekom's transatlantic focus has sharpened.

It's struck a share-swap deal with Softbank to increase its stake in U.S. unit T-Mobile.

The two two deals were announced on Tuesday (September 7).

Deutsche Telekom will raise its stake in T-Mobile US by 5.3% to over 48%.

That brings the company closer to its goal of securing direct control over the $170 billion U.S. telecoms operator.

Softbank will in return receive cash and a 4.5% stake in Deutsche Telekom.

That establishes a direct shareholding relationship, after the Japanese group sold its U.S. Sprint unit to T-Mobile in a deal in 2020.

As part of the latest restructuring Deutsche Telekom also sold its Dutch unit.

It wants to get within touching distance of majority ownership over T-Mobile US.

The unit accounts for three-fifths of group sales and is its most profitable operation.

For Softbank, the share swap deal gives it a strategic holding in Deutsche Telekom, which is present in a dozen European countries.

Shares in Softbank, which is the world's biggest tech investor through its Vision Fund portfolio, rallied by 10% on the news in Tokyo.

While Deutsche Telekom gained as much as 2.2 percent in early deals, before easing back.

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