Nextel Corporation and SoftBank Corp. announced the completion of their merger.
SoftBank invested approximately US$21.6 billion in Sprint, at which approximately US$16.6 billion are set to be distributed to Sprint stockholders. US$5 billion of the new capital is to be used to strengthen the Sprint balance sheet.
Sprint stockholders voted for the approval of the transaction at a special meeting of stockholders that was held last June 25.
Through the transaction, 72% of current Sprint shares were acquired by SoftBank for $7.65 per share.
The remaining shares were converted into shares for the new publicly traded entity named Sprint Corporation.
For the Sprint stockholders, they had the option to receive one share of common stock in the new company or to receive the cash equivalent. As per the agreement signed, terms are subjected to proration.
As a result of the merger, the ownership of the current Sprint equity holders is set at approximately 22%, while SoftBank will own approximately 78%.
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