T-Mobile US Inc announced on Monday a stock offering that could bring it almost $2 billion for spectrum purchases.
T-Mobile, the No. 4 U.S. mobile service provider, said it would sell 66.15 million common shares, or roughly 9 percent of its existing shares outstanding, and that it could use the proceeds to buy airwaves to bolster its network capacity for wireless data services.
Deutsche Telekom, which owns 74 percent of T-Mobile, said on Twitter that its stake would be cut to 67 percent after the sale, but that it was not selling its shares.
However, T-Mobile shares fell almost 3 percent in after-market trading after it announced the sale, which would bring in $1.96 billion, based on T-Mobile's Monday closing share price of $26.97, and includes an offer of 6.6 million extra shares for underwriters.
T-Mobile raised concerns among some investors over dilution of the value of its shares when it said on November 5 it could raise money for spectrum in an equity offer.
Chief Financial Officer Braxton Carter said in an interview that day that T-Mobile would be careful to avoid significant share dilution in an equity offering and that it could also opt to take advantage of low interest rates in a debt offering.
Source: Reuters
