Japanese telco Softbank has completed its US$21.6bn takeover of Sprint Nextel following shareholder and regulatory approval.
Softbank has acquired 72% of Sprint shares for US$7.65 per share in cash, and remaining shares are being converted into shares…
Japanese telco Softbank has completed its US$21.6bn takeover of Sprint Nextel following shareholder and regulatory approval.
Softbank has acquired 72% of Sprint shares for US$7.65 per share in cash, and remaining shares are being converted into shares of a new publicly traded entity.
Shareholders have received US$16.6bn and US$5bn has been put on Sprint’s balance sheet. Current shareholders will hold 22% of the new Sprint, which has dropped Nextel from its name, and Softbank will hold the majority 78%.
Dan Hesse remains as CEO while the head of Softbank, Masayoshi Son, becomes chairman.
On Tuesday Sprint closed the takeover of Clearwire Corporation. Sprint now has more spectrum than its larger rivals AT&T and Verizon Wireless, yet it still trails the big two with roughly half the amount of customers each of those two can count.
Softbank and Sprint agreed the deal last October and anticipated a mid-2013 close when it was announced. The Japanese group has faced heat from regulators and competition in the shape of Dish Network, but neither proved to be significantly disruptive to the transaction.
The Raine Group served as lead financial adviser to Softank, while Mizuho, Goldman Sachs, Deutsche Bank, JP Morgan and Credit Suisse also served as advisers.
Softbank’s legal advisors include Morrison & Foerster as lead counsel, Mori Hamada & Matsumoto as Japanese counsel, Dow Lohnes as regulatory counsel, Potter Anderson & Corroon as Delaware counsel, and Foulston & Siefkin as Kansas counsel.
Citi, Rothschild and UBS were co-lead financial advisers for Sprint.
Sprint’s legal advisors include Skadden, Arps, Slate, Meagher & Flom as lead counsel, Lawler, Metzger, Keeney and Logan as regulatory counsel, and Polsinelli PC as Kansas counsel. The special committee of the Sprint board of directors was advised by Bank of America Merrill Lynch, Shearman & Sterling, Bingham McCutchen and Spectrum Management Consulting.
