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Sprint, T-Mobile Megamerger Terms Amended Following Green Light To Join Forces

The new terms will give T-Mobile parent company Deutsche Telekom a 43 percent stake in the soon-to-be "New T-Mobile" and Sprint parent company SoftBank a 24 percent stake.

Sprint and T-Mobile, on the heels of receiving final approval to come together, revealed on Thursday evening that they have revised their merger agreement.

The new terms will give T-Mobile parent company Deutsche Telekom a 43 percent stake in the soon-to-be combined company upon the deal officially closing, up from about a 42 percent stake in which the two companies had initially agreed.

Sprint parent company SoftBank's stake in the soon-to-be New T-Mobile, what the companies are calling the combined company, will be approximately 24 percent.

[Related: Partners: Sprint, T-Mobile MegaMerger Could Create A 'Viable' Third Wireless Carrier Option For Channel, Business Customers]

The reason for the change, according to the two companies, was because SoftBank agreed to surrender 48.8 million T-Mobile shares acquired in the merger to the new company immediately after closing. SoftBank entered into a separate agreement that will change the effective exchange ratio to approximately 11.00 Sprint shares for each T-Mobile share which is an increase from the originally agreed 9.75 shares, the companies said.

The remaining percentage will be held by public shareholders after the companies are merged, Sprint and T-Mobile said.

Both boards of directors for T-Mobile and Sprint unanimously approved the amendment, the companies said.

The two carriers said that change will have no impact on T-Mobile’s previously stated outlook on the New T-Mobile’s synergies and long-term profitability.

The tweaked merger deal comes less than two weeks after Bellevue, Washington-based T-Mobile and Overland Park, Kansas-based Sprint got the green light to merge when a U.S. District court judge ruled in favor of the $26.5 billion Sprint/T-Mobile merger earlier this month following a lengthy legal battle.

The deal marks the third merger attempt for Sprint and T-Mobile, which also tried to come together in 2014 and 2017.

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