T-Mobile US launches $1.5 billion stock repurchase program

Natalie Bannerman
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The board of directors for T-Mobile US have approved a $1.5 billion repurchase program of common stock ending in December 2018

T-Mobile US, recently announced that its board of directors has approved the launch of a stock repurchase program for up to $1.5 billion of common stock, ending 31 December 2018.

Under the program, repurchases can be made through a variety of methods including: open market purchases, privately negotiated transactions or otherwise. But will not include purchases of common stock by the T-Mobile US from Deutsche Telekom AG, its majority stockholder. All of which must comply with the rules of the Securities and Exchange Commission and other applicable legal requirements.

Speaking on the news, John Legere president and CEO of T-Mobile US, said: “Since launching Un-carrier, T-Mobile has delivered unmatched growth and continues to take share in a rapidly changing and competitive wireless industry. This repurchase program underscores our board of birectors' and management team’s confidence in our business and our commitment to creating value for shareholders.” Adding “Our strong balance sheet and cash flow generation give us the ability to return capital while continuing to make significant investments in our network and operations. 2018 is going to be another exciting year in wireless and we can’t wait to get started.”

Specific times, prices and size of purchases will depend on the current stock prices, economic and market conditions. Additionally, the company says that the repurchase program does not obligate them acquire any particular amount of common stock and warns that “the repurchase program may be suspended or discontinued at any time at the company’s discretion”.

So far, Deutsche Telekom AG, T-Mobile’s majority stockholder, and its affiliates, are considering purchasing additional shares of the company’s common stock. 

The news comes a month after talks between T-Mobile and Sprint fell apart over a planned merger. The discussion ended after the two were unable to agree on who would have control of the combined company. Though the two are still clearly working from the same page, as both recently announced plans to expand its respective networks through the use of small cells. T-Mobile said that it plans to deploy 28,000 small cells to be achieved by early 2018.