Deutsche Telekom eyes direct control over T-Mobile in medium term
01/04/2021 09:17
BERLIN, April 1 (Reuters) - Deutsche Telekom DTEGn.DE
expects to secure direct ownership control over T-Mobile
TMUS.O , funded by significant capital return to shareholders
by its U.S. business, CEO Tim Hoettges told shareholders on
Thursday.
In prepared remarks to the annual shareholders meeting,
Hoettges said he expected T-Mobile to return up to $60 billion
to shareholders between 2023 and 2025.
With its share of proceeds, Deutsche Telekom would be able
to raise its holding in T-Mobile to over 50% from 43% now, at a
strike price below current market levels secured with options,
he added.
"It's harvest time," said Hoettges.
He said that the task first will be to reduce group debts of
around 120 billion euros ($141 billion) that increased as a
result of T-Mobile's takeover of smaller rival Sprint that
closed a year ago.
Hoettges reiterated Deutsche Telekom's goal of reducing its
leverage ratio - debt as a multiple of core earnings - to a
range of 2.25-2.75 times from 2.78 times over the medium term.`
($1 = 0.8522 euros)
(Reporting by Douglas Busvine)
((douglas.busvine@tr.com; +49 30 220 133 562;))