Japan's Softbank and Sprint Nextel have signed a series of definitive agreements under which SoftBank will invest USD 20.1 billion in Sprint, consisting of USD 12.1 billion to be distributed to Sprint stockholders and USD 8 billion of new capital to strengthen Sprint's balance sheet. Through this deal, around 55 percent of current Sprint shares will be exchanged for USD 7.30 per share in cash, and the remaining shares will convert into shares of a new publicly traded entity, New Sprint. Following closing, SoftBank will own around 70 percent and Sprint equity holders will own around 30 percent of the shares of New Sprint on a fully-diluted basis. . The transaction has been approved by the Boards of Directors of both SoftBank and Sprint. Completion of the transaction is subject to Sprint stockholder approval, customary regulatory approvals and the satisfaction or waiver of other closing conditions. The merger transaction is expected to close in mid-2013.
