T-Mobile Announces Rights Offering for Nearly 20 Million Shares


T-Mobile US Inc.TMUS,
-0.22%
issued a prospectus on Wednesday detailing an offer of rights to up to 19.75 million common shares in the company. Subscription rights are worth up to $ 2.03 billion. The company said the total number of outstanding shares of its common stock before and after the rights offering will remain the same, so existing shareholders who do not choose to exercise their right will see no dilution. T-Mobile plans to use the net proceeds from the rights offered by purchasing an equal number of issued and outstanding shares of its common stock from a subsidiary of Softbank Group Corp. which, prior to the offering, owns more than 24% of T- Common mobile actions. Softbank is finally “expected to hold” up to 198,314,426 T-Mobile common shares through the rights offering, a private placement of mandatory exchangeable cash trust securities, a subscribed registered offering and a sale to Marcelo Claure, a T -Mobile director. T-Mobile shares rose 0.4% in premarket trading on Wednesday. They have gained 36% in the last three months as the S&P 500 [S: SPX] It is up 28%.

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