Earlier in the day we received word about the shareholders approving the merger between T-Mobile and MetroPCS, however coming as a bit of an update, Deutsche Telekom has offered up some additional details. Just to begin with, a company spokesperson is calling this a “major step for Deutsche Telekom.”
Further comments also went on to talk about how the merger is “extremely important” and will allow them to be more aggressive in the US market. That being said, the merger is expected to be completed by May 1, 2013. Coming as a result of the merger, MetroPCS shareholders will be receiving an advanced cash payment of approximately $1.5 billion.
That advance will then be followed with a reverse stock split of the MetroPCS shares. This split will take place before MetroPCS is officially merged with T-Mobile. From this point and following the closing of the merger, the (then former) MetroPCS shareholders will get 26 percent of the shares of the new company.
On the flip side, Deutsche Telekom will retain the other 74 percent of the shares. The new company will be trading under the name of T-Mobile US and will be known as TMUS on the New York Stock Exchange (NYSE). Otherwise, for a look back at how the story of the merger unfolded over the previous months, make sure to venture down into the Story Timeline below.[via Telekom]