Brightstar has announced a definitive agreement for Softbank to invest JPY 1.26 billion in BrightStar. As part of the transaction, the Buying & Innovation Group, "BIG," a joint venture created to provide savings and efficiencies for Softbank, Sprint and Brightstar, will become a division of Brightstar. Softbank's investment, which values Brightstar at JPY 2.2 billion, including its existing outstanding debt, is the next step in Brightstar's evolution. As a result of the transaction, Brightstar will become the exclusive provider of handsets, accessories and services to certain Softbank telecommunications affiliates. In addition, Brightstar, leveraging certain assets of Softbank telecommunications affiliates, will buy more than JPY 20 billion in handsets, accessories and services. Both companies will leverage Brightstar's local presence in more than 50 countries to commercialise products and services offered by Softbank, its affiliates and its investment companies.
Softbank is financing the transaction with cash on hand. In addition to its JPY 1.26 billion cash investment, and as part of a liability management exercise, Softbank intends to guarantee Brightstar's outstanding USD 350 million senior unsecured notes due 2016 and USD 250 million senior unsecured notes due 2018.
After the transaction, Softbank will own approximately 57 percent and Marcelo Claure will own approximately 43 percent of Brightstar shares on an outstanding basis. Claure will continue as president and CEO of Brightstar. Over the next five years, or upon certain events, Softbank's ownership will increase to 70 percent. The companies expect the closing of the transaction to occur by the end of 2013.
