MetroPCS and T-Mobile Reverse Merger Approved By Stockholders, Set to Take Place May 1st
It’s not everyday a reverse merger (a smaller company buys a larger company) is successful, but in the case of T-Mobile and Metro PCS, it appears that both sides are claiming a victory. Today shareholders cast their final vote and approved the pending merger making the deal set to go into effect on May 1st. The landmark decision will yield a profitable payout to the tune of $1.5 billion, which will be paid out to Metro PCS shareholders.
T-Mobile fought hard for this deal to close and is just another success in their goals to improve over the course of 2013. Here is what René Obermann, CEO of Deutsche Telekom Group, said about the merger:
We have accomplished a lot in the USA recently, for example our network modernization and the new T-Mobile USA management team, which has seen considerable success. And we have finalized the contracts with Apple and MetroPCS. The merger with MetroPCS is extremely important, since it enables us to be more aggressive in the USA.
Details have yet to surface about how the merger will effect subscribers on either network. With May 1st right around the calendar corner, we’re expecting more information to emerge in the coming days. The full press release can be found below.
Deutsche Telekom and T-Mobile USA applaud MetroPCS Stockholder Approval of T-Mobile-MetroPCS Combination
Apr 24, 2013
At a special meeting in Richardson, Texas, the stockholders of MetroPCS approved the agreement with Deutsche Telekom to combine T-Mobile USA with their company. Deutsche Telekom applauds the shareholders’ decision, which clears the path for a new, combined, larger and more powerful mobile services provider in the USA.
“This is a major step for Deutsche Telekom,” said René Obermann, CEO of Deutsche Telekom Group. “We have accomplished a lot in the USA recently, for example our network modernization and the new T-Mobile USA management team, which has seen considerable success. And we have finalized the contracts with Apple and MetroPCS. The merger with MetroPCS is extremely important, since it enables us to be more aggressive in the USA.”
“The merger adds valuable tailwind to our Uncarrier Strategy in the USA,” said Timotheus Höttges, CFO of Deutsche Telekom and Chairman of the newly-formed company. “We have radically changed our business model and launched drastically simplified tariffs. Together with MetroPCS, we will make considerable improvements to our competitive position with our combined state-of-the-art network, more powerful sales model and top devices like the Apple iPhone 5 and the Samsung Galaxy S4.”
With today’s approval by MetroPCS’ stockholders, all the requisite approvals required to complete the proposed combination have been received and the transaction is expected to close by May 1, 2013. In line with the closing, the consolidation of the new company into the Deutsche Telekom Group will be effective as of May 1, 2013.
As part of the transaction, MetroPCS shareholders (status as of March 11, 2013) will receive an advanced cash payment of approximately 1.5 billion US dollars from their company. This will be followed by a reverse stock split of the MetroPCS shares before the company is merged with T-Mobile USA. Following the closing of the transaction, the shareholders of (the former) MetroPCS will receive 26 percent of the shares of the new company, while Deutsche Telekom will hold 74 percent of the merged company. The company will trade under the legal name T-Mobile US and will be listed on the New York Stock Exchange (NYSE) under the symbol TMUS.
