BERLIN, May 20 (Reuters) - Deutsche Telekom is committed to securing majority ownership of its U.S. business T-Mobile, Chief Executive Tim Hoettges told an investor presentation on Thursday.
“We are clearly willing to get the majority in the timeframe that we have laid out,” Hoettges said. This would happen by the time that the proxy voting rights it holds expire in 2024, the executive added.
Deutsche Telekom’s stake was diluted to 43% after T-Mobile took over its smaller rival Sprint, but under a shareholder agreement it can vote former Sprint owner Softbank Group’s remaining 9% stake, thereby assuring overall control.
Hoettges has said he expects T-Mobile to return capital to investors via a share buyback. With its share of proceeds, Deutsche Telekom would be able to raise its stake, in part by exercising a call option struck with Softbank. (Reporting by Douglas Busvine Editing by Riham Alkousaa)