Japan’s NTT to spend $38B to buy out, take DoCoMo private

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MITO, Japan (AP) — Japanese telecoms giant Nippon Telegraph & Telephone, or NTT, announced Tuesday it will spend 4.3 trillion yen ($38 billion) to buy out and take private its mobile unit NTT DoCoMo in one of the largest ever deals of its kind.

NTT and NTT DoCoMo executives released details of the plan Tuesday.

The move is intended to enhance the competitiveness of the NTT group as it consolidates its services, said NTT’s CEO Jun Sawada.


“We want to be a game changer,” Sawada said.

NTT to Take Mobile Unit Docomo Private for $38 Billion

(Bloomberg) — Nippon Telegraph & Telephone Corp. plans to turn its wireless carrier unit NTT Docomo Inc. into a wholly owned subsidiary, a move that may help Prime Minister Yoshihide Suga’s policy push to lower phone tariffs.



a group of people standing next to a sign: Pedestrians cross a road in front of an NTT Docomo Inc. store in Tokyo, Japan, on Wednesday, April 24, 2019. Docomo this month cut prices on its mobile phone data plans, some by as much as 40 percent, responding to government pressure to reduce prices that it says are among the world's highest.


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Pedestrians cross a road in front of an NTT Docomo Inc. store in Tokyo, Japan, on Wednesday, April 24, 2019. Docomo this month cut prices on its mobile phone data plans, some by as much as 40 percent, responding to government pressure to reduce prices that it says are among the world’s highest.

NTT will pay 3,900 yen a share to acquire the shares it doesn’t already hold, the companies said in a statement. The buyout is worth around 4.25 trillion yen ($40 billion), a more than 40% premium to Monday’s closing price in Tokyo. Given that parent NTT already controls 66% of the wireless carrier, any proposal is all but guaranteed to pass.

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Docomo’s board said it’s in favor of the takeover by its parent, which will fund the purchase through borrowings. The tender offer, the largest for a Japanese company in history, is scheduled to start Sept. 30 and will be completed in the fiscal year ending March 31. When NTT spun out Docomo in 1998, it was also the biggest-ever initial public offering at the time.

The proposal to combine the former national companies comes just 15 days after Suga succeeded Shinzo Abe as the nation’s prime minister. With government documents showing data-heavy users in Tokyo pay more than three times for a monthly contract than users in Paris, Suga has made reducing phone bills charged by Docomo and Japan’s other major carriers a priority to score a quick policy win and avoid being seen as a caretaker leader, market watchers have said.

“In order to

Japan’s NTT to take full control of wireless unit Docomo for $38 billion: Nikkei

TOKYO (Reuters) – Japanese telecoms group Nippon Telegraph and Telephone <9432.T> will take full control of its wireless carrier business NTT Docomo Inc <9437.T> for about 4 trillion yen ($37.89 billion), the Nikkei business daily reported on Tuesday.

The move comes as Japan’s new prime minister Yoshihide Suga has criticised Japan’s top three mobile phone carriers including NTT Docomo, saying he wants more competition and lower rates.

NTT will seek to buy the remaining 34% of NTT Docomo and delist the business from the Tokyo stock exchange, the Nikkei said.

The move is intended to allow NTT Docomo to better respond to pressure from the government to cut mobile fees, according to the report.

Drastic fee cuts will temporarily take a toll on NTT Docomo’s earnings, but having NTT as the sole shareholder will help mitigate the negative impact, the Nikkei report said.

An NTT spokesman said the report was not based on what the company has announced. Representatives of NTT Docomo were not immediately available for comment.

NTT Docomo is Japan’s largest wireless carrier, followed by KDDI Corp <9433.T> and SoftBank Corp <9434.T>.

($1 = 105.5700 yen)

(Reporting by Makiko Yamazaki. Editing by Jane Merriman)

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