MetroPCS shareholders have voted in favor of merging the company with the nation’s fourth largest wireless provider. Shareholder approval was the last major hurdle the deal faced as regulators had already given the merger the green light earlier this year.
Shareholders have been voicing concern over the deal as they felt the move would land them in further debt and there simply wasn’t enough value in the deal for MetroPCS. Those issues were reportedly addressed by T-Mobile’s parent company Deutsche Telekom as they had to sweeten the terms to get everyone on board.
Two of the company’s major investors, Paulson & Co. and Schoenfeld Asset Management, were some of the most outspoken but are now said to be happy with the improved terms. As per the agreement, shareholders will receive $4.06 per share in cash plus holdings in 26 percent of the combined company.
Once the deal is complete, T-Mobile will have an additional 9 million subscribers on their network. It’s not enough to boost them into third place but it certainly helps. Furthermore, the deal will give T-Mobile access to additional wireless spectrum which can be used to help speed along their LTE rollout. The company plans to offer LTE service to more than 100 million people by the middle of the year and around 200 million as we say goodbye to 2013.