SoftBank shares skyrocket
A day following a U.S. district judge approving a merger between Sprint and T-Mobile, the shares of SoftBank group started ascending on Wednesday.
Founded in 1981, SoftBank Group Corp. is a Japanese multinational conglomerate holding company headquartered in Tokyo and it is also a major shareholder of Sprint.
SoftBank Group’s stock closed by adding 11.89% on Wednesday after going up more than 14% earlier in the session.
Although the deal still can’t be closed until the California Public Utilities Commission approves the transaction, the ruling on Tuesday wraps up a years-long courtship between Sprint and T-Mobile, which have made multiple attempts over the years to merge.
As reported by CNBC, ahead of the latest development, Asymmetric Advisors’ Amir Anvarzadeh wrote in a note dated Feb. 11 that the ruling would clear “one big potential negative” surrounding SoftBank.
“With the merger removing Sprint’s $40bn of debt from (SoftBank)’s balance sheet, also doing away with the potential headache of finding another suitor, we think (SoftBank) has once again managed to wriggle itself out of big trouble,” Anvarzadeh stated.