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Iliad willing to give $15 billion in cash for T-Mobile US

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Iliad
Possible acquisition   Iliad confirms media speculations

Iliad of France has submitted to the board of directors of T-Mobile US an indicative offer for T-Mobile US.


The offer has the full support of Xavier Niel, founder and majority shareholder of Iliad, and was unanimously approved by Iliad's board of directors. The offer is subject to certain conditions, including notably due diligence on T-Mobile US.

Iliad has offered $15 billion in cash for 56.6% of T-Mobile US, at $33 per share. Iliad values the remaining 43.4% of T-Mobile US at $40.5 per share on the basis of $10 billion of synergies to the benefit of the T-Mobile US shareholders. This leads to an overall value of $36.2 per share, a premium of 42% over T-Mobile US's unaffected share price of $25.4.

The cash portion would be financed via a combination of debt and equity. Iliad has the support of leading international banks for the acquisition debt. The equity portion would be approximately €2 billion, and Mr Xavier Niel would participate in the capital increase.

This transaction should not raise any antitrust issue in light of the competition rules given that Iliad is not present in the United States.


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