UPDATE, March 5: MetroPCS has pushed back the shareholders meeting to April 12.
It has been more than four months since T-Mobile announced its intentions to gobble up MetroPCS. And while the wireless industry continues to go through numerous transformations, the big merger could be on track to go through if MetroPCS shareholders approve the deal next month.
MetroPCS announced today that it plans to hold a stockholder vote on March 28, urging shareholders to approve the deal.
The company writes in a letter to shareholders:
The MetroPCS board of directors has unanimously concluded that the proposed combination with T-Mobile is in the best interest of MetroPCS and its stockholders. After a multi-year, thorough review of MetroPCS’ options, with the assistance of independent financial and legal advisors, the MetroPCS board determined that this proposed combination is the best strategic alternative for our stockholders. The immediate cash payment you will receive and the significant ownership interest you will hold in the combined company represent a substantial premium to MetroPCS’ current stock price, and your ownership in the combined company will allow you to participate in the potential synergies and value created by this combination.
T-Mobile plans to issue a $1.5 billion cash payment as part of the deal, and give MetroPCS shareholders a 26 percent ownership in the new entity. If the deal is not approved, shareholders “will not enjoy the compelling benefits of this combination,” the company said. MetroPCS also encouraged shareholders to discard a white proxy card that was sent to shareholders by a “single dissident stockholder” — instead encouraging them to fill out the yellow proxy to approve the deal.
T-Mobile is the country’s fourth largest wireless carrier, and it is looking to outgun Sprint, which is involved in its own merger efforts with Clearwire. Both T-Mobile and Clearwire are based in Bellevue, so these deals will have special importance to the Seattle tech region.