Japanese company SoftBank Group Corp said it would receive shares in US telco T-Mobile worth $7.59 billion.

In doing so, shares in the telco rose by as much as seven percent.

In a statement, SoftBank said it had told T-Mobile to issue 48.75 million shares in common stock to it after conditions set out in an agreement made as part of the merger of SoftBank's US telco Sprint and T-Mobile were met.

The merger was first announced back in 2018, before it was completed in 2020. It's estimated to be worth $37 million.

The stock is expected to improve SoftBank's balance sheet, and also potentially presents a new capital pool to tap into.

SoftBank is estimated to have close to 50 million mobile subscribers in Japan, and is the third largest operator in the country.