Sprint Nextel reported this morning that its shareholders have approved its pending $21.6 billion acquisition by Softbank, with the deal now set to be finalized early next month.
Sprint Nextel noted that voters representing approximately 80% of the carrier’s outstanding shares voted in favor of the deal. Terms of the deal call for Sprint Nextel shareholders to receive $7.65 per share or one new share of common stock in the new operation for each share currently owned.
“Today is a historic day for our company, and I want to thank our shareholders for approving this transformative merger agreement,” said Sprint Nextel CEO Dan Hesse in a statement. “The transaction with SoftBank should enhance Sprint’s long-term value and competitive position by creating a company with greater financial flexibility.”
The approval followed Softbank earlier this month increasing its offer to acquire a stake in the carrier, pushing the bid from $20.1 billion for a 70% stake to $21.6 billion for a 78% stake. That change increased the cash portion of that price by $4.5 billion to $16.64 billion, and seemed to avert attention from a proposed $25.5 billion acquisition attempt offered up by Dish Network.
As part of the new offer, Sprint Nextel and Softbank placed a June 18 deadline on Dish Network to provide its “best and final” offer, which Dish Network decided not to provide.
The deal is only pending approval from the Federal Communications Commission, which analysts expect to happen in the next week or so. Softbank and Sprint Nextel late last month gained approval for the deal from the Committee on Foreign Investment in the United States, which found “no unresolved national security issues” with the deal. There was some initial concern from domestic lawmakers that the current use of network equipment by Softbank and Clearwire, which Sprint Nextel holds a majority interest in, from Chinese vendors could be a national security concern. Sprint Nextel and Softbank agreed to enter into a “National Security Agreement” with the U.S. government that reportedly involves the inclusion of a four-member national security committee to oversee network operations, while Softbank also agreed to remove equipment from Chinese vendors from Clearwire’s network by 2016.
Sprint Nextel is also in the closing stages of purchasing an increased stake in Clearwire, with recent news that Sprint Nextel’s increased offer has gained support of Clearwire’s board of directors and institutional investment services. The increased Sprint Nextel offer seems to have put to an end Dish Network’s attempt to acquire a stake in Clearwire.
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