Japan’s NTT to Spend $38B to Buy Out, Take DoCoMo Private | Business News

By ELAINE KURTENBACH, AP Business Writer

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.

He said that between Sept. 30-Nov. 16 the company would buy DoCoMo’s shares at a price of 3,900 yen. DoCoMo’s shares were last trading at 3,213 yen. NTT held about 66% of DoCoMo’s shares as of March 31.

The acquisition will be financed by bridge loans, not a share offering, the company said.

The restructuring dovetails with newly

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

Updated

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NTT to Take Mobile Unit Docomo Private for $38 Billion, Nikkei Reports

(Bloomberg) — Nippon Telegraph & Telephone Corp. plans to turn its wireless carrier unit NTT Docomo Inc. into a wholly owned subsidiary through a tender offer that would be Japan’s largest ever, the Nikkei newspaper reported.



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.


© Bloomberg
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.

The deal will be announced “soon,” the report said, without citing anyone. The buyout could be worth 4 trillion yen ($38 billion), based on a 30% premium to the closing price in Tokyo on Monday. That would make it the largest tender offer for a Japanese company in history, according to the Nikkei.

NTT already holds 66.2% of

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