Telecom Lead America: SoftBank on Tuesday said its offer has 21 percent premium value to Sprint Nextel shareholders, taking on Dish Network’s offer.
Earlier, Dish Network claimed that Dish’s offer for Sprint Nextel is at 13 percent premium to SoftBank offer. Dish’s offer is currently under the evaluation of the board of Sprint.
In a presentation, SoftBank CEO Masayoshi Son said Dish proposal is incomplete and illusory. The Japanese telecom giant said SoftBank transaction provides 21 percent premium.
In this video, SoftBank CEO Masayoshi Son outlined eleven key areas where the SoftBank transaction provides greater benefits to Sprint shareholders and calculated how the SoftBank transaction provides Sprint shareholders with cash, stock and synergies collectively representing a 21 percent premium to the Dish proposal.
SoftBank is expected to complete the transaction in June 2013 against Dish Network’s promise of mid 2014.
Moreover, SoftBank’s proposal is fully financed against Dish Network’s uncommitted financing.
The other major point emphasized by SoftBank is its telecom background and efficient business. Dish Network does not have a telecom background, the company said in a presentation.
SoftBank has global scale than Dish Network’s presence in select markets. The Japanese company does not have any strong litigation history. But Dish is well known for litigation, SoftBank says.
Dish Network chairman Charlie Ergen’s open letter (offer) to Sprint
The consideration of $25.5 billion consists $17.3 billion in cash and $8.2 billion in stock. Sprint shareholders would receive $7 per share, based upon Dish’s closing price on April 12, 2013. This consists of $4.76 per share in cash and 0.05953 Dish shares per Sprint share.
The cash portion of the proposal represents 18 percent premium over the $4.03 per share implied by the SoftBank proposal, and the equity portion represents approximately 32 percent ownership in the combined Dish/Sprint versus SoftBank’s proposal of a 30 percent interest in Sprint alone. Together this represents a 13 percent premium to the value of the existing SoftBank proposal.
Analysts’ responses to Dish Network’s $25.5 billion offer for Sprint
Dish Network, the # 2 U.S. satellite television provider, had offered to buy wireless service provider Sprint Nextel for $25.5 billion in cash and stock, a move that could inspire other telecommunications or video companies to consider their own prospects of combining.
Pix: Bloomberg