T-Mobile, MetroPCS merger receives unanimous board of directors approval

April 16, 2013
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The merger still needs the official nod from the stockholders, however the MetroPCS board of directors has given their approval. The details come by way of a recently issued MetroPCS press release which states that the "board unanimously recommends that MetroPCS stockholders vote their shares "FOR" all proposals relating to the proposed combination with T-Mobile." Basically, the MetroPCS and T-Mobile merger continues to move forward.

The MetroPCS shareholder meeting, which was previously postponed, is now scheduled for April 24, 2013. Earlier details on the merger show approvals as coming from the Department of Justice, FCC and the Committee on Foreign Investment. In other words, all the regulatory approvals have been given and the only remaining approval needs to come from the stockholders.

Aside from the approvals side, some of the merger related news came by way of Deutsche Telekom who gave their "best and final" offer earlier in the month. This news included how Deutsche Telekom was going to lower the shareholder loans by $3.8 billion which brought the new number to $11.2 billion (down from $15 billion).

It was said that the decrease would be “significantly increasing the equity value of the combined company.” Deutsche Telekom also reduced the interest rate on these shareholder loans by 50 basis points and have committed to a lockup period which will keep them from publicly selling their shares for 18 months (this was upped from 12 months). All said and done, we now look towards April 24 for the stockholders meeting.

[via MetroPCS]


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