Deutsche Telekom buys additional T-Mobile US shares for $2.4 billion

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FILE PHOTO: FILE PHOTO: The logo of German telecoms giant Deutsche Telekom and GSM antennas are seen atop the company's headquarters in Bonn

DUESSELDORF, Germany (Reuters) -Deutsche Telekom said it has bought additional shares in T-Mobile US from Softbank for $2.4 billion, bringing CEO Tim Hoettges closer to his goal of securing direct control over the U.S. telecoms operator.

The purchase of the 21.2 million shares via a call option raises Deutsche Telekom’s stake in T-Mobile US to 48.4%, within touching distance of a majority stake, from below 47%, the German company said on Wednesday.

As part of a deal agreed with Softbank in 2020, Deutsche Telekom paid a fixed price of $101.46 per T-Mobile US share for 11.8 million of the shares, and $128.68 per share for the rest, based on the stock’s weighted average price.

That means the average price for the deal was $113 per T-Mobile US share, compared with Tuesday’s closing price of $131.44.

Deutsche Telekom used part of the roughly 4 billion euros it received from the sale of its T-Mobile Netherlands business to pay for the shares.

(Reporting by Matthias Inverardi; writing by Maria Sheahan; editing by Riham Alkousaa and Jason Neely)