We knew Deutsche Telekom was planning to submit a new bid dealing with the MetroPCS and T-Mobile merger and it looks like that has not only been done, but also detailed. This will not change the earlier bit about the MetroPCS shareholder meeting having been pushed back to later in April, however we now know what this new bid includes. Coming by way of Deutsche Telekom, here are the details of what they are describing as the “best and final offer.”
We noted earlier that at this point it seems the merger is going to be approved, but how this last minute fussing seems to be more about making sure everyone is happy. Needless to say, nothing is final until we get the official word from the carriers. That being said, here is what those shareholders will be spending their time considering.
The current bid was dealing with $15 billion in shareholder loans and as part of the new bid, Deutsche Telekom will reduce these shareholder loans by $3.8 billion. This means a new number of $11.2 billion, which will be “significantly increasing the equity value of the combined company.” Further details on this, Deutsche Telekom has also said they will be reducing the interest rate on these shareholder loans by 50 basis points.
Deutsche Telekom will also commit to a lockup period in which they will be prohibited from publicly selling shares in the combined company. This lockup period was initially set at 12 months and has been extended to 18 months. Otherwise, parts of the original agreement remain in place. These remaining pieces include a $1.5 billion aggregate cash payment to existing MetroPCS shareholders and the agreed ownership structure of the combined company, with 26 percent of the shares being held by current MetroPCS shareholders and 74 percent by Deutsche Telekom.[via Telekom]