Deutsche Telekom to Get Cash Inflows From T-Mobile US's Payout Program
September 07 2023 - 2:14AM
Dow Jones News
By Adria Calatayud
Deutsche Telekom expects to receive dividends from T-Mobile US
for the first time starting in the fourth quarter and further cash
inflows next year from selling shares in its U.S. subsidiary on the
market.
The German telecommunications group said late Wednesday that it
intends to sell a portion of its T-Mobile US shares from next year
while maintaining its majority ownership in the U.S. business.
The decision came as T-Mobile US outlined a plan to return up to
$19 billion to shareholders through dividend payments and share
buybacks from the fourth quarter of 2023 to the end of 2024,
joining peers like AT&T and Verizon Communications in paying
out regular dividends.
Deutsche Telekom expects to receive around $1.8 billion in
dividend payments, after taxes, over the next five quarters, it
said.
The exact number of T‑Mobile US shares that will be sold by
Deutsche Telekom has yet to be decided, the German company said. As
of mid-July, Deutsche Telekom held an equity interest of 51.4% in
T-Mobile US, a stake that increased in recent months because the
German parent abstained from participating in the first phase of a
buyback program launched by its U.S. subsidiary last year.
Deutsche Telekom said a secure, sustainable majority in T-Mobile
US remains a strategic goal for the group.
T-Mobile US's shareholder-return program doesn't change Deutsche
Telekom's own dividend policy or debt-reduction targets, the German
company said.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
September 07, 2023 01:59 ET (05:59 GMT)
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