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T-Mobile Rolls Out $1.5B Buyback Plan After Sprint Deal Talks Collapse

T-Mobile Rolls Out $1.5B Buyback Plan After Sprint Deal Talks Collapse

Wednesday, 06 December 2017 08:30 AM

T-Mobile US said its board approved the U.S. wireless carrier’s first-ever buyback program, a month after the company and rival Sprint Corp. ended their deal talks.

Deutsche Telekom AG, which holds over 60 percent in T-Mobile, also plans to purchase additional shares, T-Mobile said on Wednesday.

The buyback of up to $1.5 billion of shares would start from Thursday and take place through Dec. 31, 2018, T-Mobile said.

“Coming off the Sprint deal with significant shareholder rotation happening, we think that we have a tremendous value here,” CFO Braxton Carter said at the UBS Global Media and Communications Conference on Wednesday.

Combined with Deutsche Telekom’s planned repurchases, the program could approach the $2 billion level, Carter said.

“(Deutsche Telekom) is finalizing plans right now,” Carter said.

Through the buyback, Deutsche Telekom aims to hold its stake broadly steady, within a range of 1-2 percentage points, a source familiar with the matter told Reuters.

The issue of control was one of several deal-breakers in the T-Mobile-Sprint talks and the buyback would strengthen Deutsche Telekom’s hand in any future merger talks.

Carter also said the company was focused on smaller, “tuck-in” acquisitions. “We think there’s a lot of potential out there,” he said. “That would be another use of cash.”

T-Mobile’s shares were up 1.3 percent at $61.73.

© 2019 Thomson/Reuters. All rights reserved.

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U.S. wireless carrier T-Mobile US said on Wednesday its board authorized a buyback program for up to $1.5 billion of the company's common stock.
t-mobile, board, stock, buyback, program
Wednesday, 06 December 2017 08:30 AM
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