...September 8, 2021 PARIS (S&P Global Ratings) Sept. 8, 2021--S&P Global Ratings today said that following the announcements by Deutsche Telekom AG (DT; ###/Stable/A-2), it is increasingly likely that the company can fund its intended seizing of a majority stake in its currently 43%-owned subsidiary T-Mobile U.S. (TMUS) while significantly reducing its S&P Global Ratings-adjusted debt leverage from 2022 onward toward levels commensurate with a potential upgrade within about three years. DT announced today the sale of T-Mobile Netherlands, generating 3.8 billion of net proceeds, of which 2.1 billion will fund the acquisition of a 1.6% TMUS stake from Softbank. In addition, DT announced it acquired an additional 3.6% TMUS stake from Softbank in exchange for a stake in DT's capital. Overall, DT will raise its stake in TMUS to 48% from 43%. The overall transaction is largely equity funded while the cash-out portion is slightly overfunded through the disposal of its Dutch business. The transactions...
