“Given the current situation where there is a concern for a second and third wave of spread of COVID-19, (SoftBank Group) believes that it needs to further enhance its cash reserves,” the company said in a statement.
SoftBank’s T-Mobile share sale represents nearly two thirds of its stake in the US carrier. The deal will leave SoftBank with a roughly 9% stake in T-Mobile.
T-Mobile said in a statement that it plans to sell about 134 million of the shares SoftBank sells in the deal to the public. Marcelo Claure, SoftBank’s chief operating officer and a T-Mobile board member, will purchase 5 million shares, according to a regulatory filing with the US Securities and Exchange Commission.
Shares in T-Mobile fell 1.6% in extended trading. SoftBank shares rose as much as 3% in Tokyo, before paring back some of those gains. They were last trading up about 1%.