SoftBank Group Corp. said Tuesday it will reduce its stake in T-Mobile U.S. Inc., selling an expected $21 billion worth of stock as part of plans to raise 4.5 trillion yen ($42 billion) to buy back shares and reduce debt.
The Japanese technology conglomerate said it will sell up to 198.31 million shares in the U.S. telecom firm. T-Mobile shares closed at $106.60 on Monday.
The price at which SoftBank Group will sell will be determined later, it said.
It currently has around a 24 percent stake in T-Mobile, while Deutsche Telekom AG owns around 43 percent.
In March, SoftBank Group said it would sell up to 4.5 trillion yen worth of assets in a bid to improve its ailing balance sheet that has been hit by disastrous investments, including in U.S. shared working space provider WeWork, as well as by the global financial market turmoil sparked by the coronavirus outbreak.
SoftBank Group reported last month a record net loss of 961.58 billion yen for the year that ended March 31, its first red ink in 15 years, as investments by its Vision Fund in WeWork and other startups deteriorated.
T-mobile merged with Sprint Corp., a struggling U.S. carrier controlled by SoftBank Group, in April.
© Kyodo News International, Inc., source Newswire