SoftBank is selling part of its T-Mobile stake in a secondary offering

SoftBank is selling part of its stake in T-Mobile through a secondary offer, David Faber of CNBC reported on Monday.

Morgan Stanley and Goldman Sachs will subscribe to the offer, sources told CNBC.

The Wall Street Journal earlier reported that SoftBank was in talks to resell part of its stake in T-Mobile to its parent company, Deutsche Telekom. Sources told CNBC that the sale will also include a secondary offer for a significant portion of the stake.

The news of the sale comes on the same day that SoftBank declared $ 13 billion in total annual losses for its core business, with $ 18 billion in losses for its massive risk arm, the Vision Fund. The $ 100 billion fund was created to take big risks and inject capital into innovative companies, but it recently suffered from the failure of WeWork’s IPO and the start of the coronavirus pandemic , which has disrupted businesses of all kinds.

T-Mobile recently merged with the holding company SoftBank Sprint after a long legal battle. If T-Mobile’s share reaches certain milestones within two years, a source told the Journal, SoftBank will retain rights to 48.8 million shares delivered to finalize the merger. T-Mobile currently has a market valuation of around $ 126 billion.

This story is developing. Check back for updates.

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