Dish Network on Monday said it would study the revised offer of SoftBank and consider strategic options.
“We continue to believe that Sprint has tremendous value. We will analyze the revised SoftBank bid as we consider our strategic options,” said Dish Network.
Dish’s response came in the wake of SoftBank deciding to increase the offer price from $7.30 per share to $7.65 per share.
As per the revised offer, SoftBank offers an additional $4.5 billion of cash to Sprint stockholders, bringing the total cash available to Sprint stockholders to $16.64 billion.
Sprint’s Special Committee and Board of Directors approved the revised offer. They also recommended to stockholders to vote for the revised SoftBank transaction.
The $4.5 billion of additional cash will be funded by a reallocation of $3 billion of SoftBank’s previously proposed $4.9 billion primary investment in New Sprint and by $1.5 billion of incremental capital from SoftBank.
The revised offer means that the pricing of SoftBank’s $1.9 billion primary investment will be increased by 19 percent from the previously agreed $5.25 per share to $6.25 per share.
The current Sprint stockholders’ will own 22 percent stake in the New Sprint, while SoftBank will own approximately 78 percent.
SoftBank will invest $1.9 billion in New Sprint, which in addition to the $3.1 billion convertible debt investment made by SoftBank in October 2012, brings SoftBank’s total investment in Sprint to $5 billion.
“The amended agreement announced today delivers more upfront cash to Sprint stockholders, while still achieving our goal of creating a well-capitalized Sprint that is better positioned to bring meaningful competition to the US market,” said SoftBank Chairman and CEO, Masayoshi Son.
