Recording of Gain Relating to Loss of Control of Sprint
SoftBank Group Corp. (“SBG”) announced today that it expects to record a gain of approximately JPY 750 billion (before taxes) relating to loss of control of Sprint Corporation (“Sprint”), which was a U.S. subsidiary of SBG, under net income from discontinued operations in its consolidated statement of income for three-month period ending June 30, 2020. This is the result of Sprint ceasing to be a subsidiary of SBG upon completion of the merger with T Mobile US, Inc. (the “Transaction”) on April 1, 2020 (Eastern Time), as announced in “Completion of Merger of Sprint and T-Mobile” dated April 2, 2020.
This gain represents the difference between a) the total fair value as of April 1, 2020 of 304,606,049 shares of the new combined company T-Mobile US, Inc. (“T-Mobile,” an equity method associate of SBG) stock that SBG acquired as a consideration for the Transaction and 48,751,557 shares to be acquired when certain conditions are met* and b) the consolidated carrying amount of Sprint in SBG’s consolidated statement of financial position.
On June 23, 2020, SBG announced the commencement of transactions to transfer its shares of common stock of T-Mobile. After the completion of the transactions on June 26, 2020 (Eastern Time), T-Mobile is expected to cease to be an equity method associate of SBG. As a result of the transfer and the removal of T-Mobile from the equity method associates, SBG will record a gain or loss on the sale of shares of associates in its consolidated statement of income, which will be disclosed separately. For details, see “Transfer of Shares of Equity Method Associate (T-Mobile US, Inc.)” dated June 23, 2020 and “Number of Shares to be Transferred and Purchase Price for the Transfer of Shares of Equity Method Associate (T-Mobile US, Inc.)” dated June 24, 2020.
See “Amendment of Agreed Terms for Merger of Sprint and T-Mobile” dated February 21, 2020 for details.
Releases, announcements, presentations and other information available from this page and elsewhere on this website were prepared based on information available and views held at the time of preparation and speak only as of the respective dates on which they are filed or used by SoftBank Group Corp. or the applicable group company, as the case may be. Such information is subject to change and may become out-of-date. Such information may also contain forward-looking statements which are by their nature subject to various risks and uncertainties that may cause actual results and future developments to differ materially from those expressed or implied by such statements. Please read legal notices in its entirety prior to viewing any information available on this website.