Investors in Leap Wireless have approved AT&T’s US$15 per share to take over the US prepaid operator.
Leap said that more than 99% of its shareholders approved the transaction, which will see AT&T pay US$1.19bn for the asset and take on its US$2.8bn…
Investors in Leap Wireless have approved AT&T’s US$15 per share to take over the US prepaid operator.
Leap said that more than 99% of its shareholders approved the transaction, which will see AT&T pay US$1.19bn for the asset and take on its US$2.8bn debt pile.
When AT&T announced the deal in July, the incumbent said 30% of Leap’s shareholders had already committed to vote in favour of the transaction.
AT&T’s offer represented an 88% premium on Nasdaq-listed Leap’s previous closing price at the time.
Leap’s stock is currently trading above AT&T’s offer at US$16.18.
The transaction still has to receive regulatory approvals from the Department of Justice and the Federal Communications Commission (FCC). Reports have suggested regulators are concerned at how much spectrum is already in the hands of the operators and could ask for some frequencies to be divested.
The acquisition will put AT&T in direct competition with T-Mobile US in the prepaid market. The Deutsche Telekom subsidiary acquired MetroPCS, a similar operator to Leap, earlier this year. With both prepaid operators gaining spectrum-rich parents, their footprints will cross.
AT&T has previously said it expects the merger to close in Q1 or Q2 next year.
Lazard is serving as sole financial adviser to Leap and Wachtell, Lipton, Rosen & Katz is its legal counsel.
Evercore Partners is AT&T’s financial adviser while Sullivan & Cromwell is serving as its legal counsel.
