SoftBank shares see huge increase after US judge approves T-Mobile and Sprint merger
SoftBank saw its stock close 11.89 per cent higher after skyrocketing more than 14 per cent earlier in the session
Shares in Japanese conglomerate SoftBank Group surged a day after a US district judge gave the go ahead for a merger between Sprint and T-Mobile.
SoftBank, which is a major shareholder in Sprint, saw its stock close 11.89 per cent higher after rising more than 14 per cent earlier in the session.
Similarly, Sprint saw its own stock on Wall Street gain 77.7 per cent.
The ruling in the US clears one of the final stages for the deal, which still can’t close until the California Public Utilities Commission approves the transaction.
The ruling is the culmination of a long courtship between Sprint and T-Mobile, which have made multiple attempts over the years to merge.
The latest development comes as a boost to SoftBank amid multiple reports that it is struggling to raise capital for its second Vision fund. Some of the notable companies that the first Vision fund invested in include ride-hailing giants Uber and Southeast Asia’s Grab.
Reports from the Wall Street Journal and others say SoftBank is on track to raise about half of the $108 billion (£83bn, €98bn) promised by executives last summer after investors, disenchanted by WeWork and irregular operations, refused to give out the necessary cash.
However, a top executive at the firm has reportedly said that it is “too early” to make conclusions about the final size of the pool and the composition of the funds.
Last year SoftBank was in talks to invest in WeWork but its $9.5 billion bailout of the company stalled because the SoftBank’s plan to secure $3 billion from Japan’s three biggest banks failed.
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