Japan's Nippon Telegraph and Telephone Corp (NTT) is set to launch Japan’s largest tender offer for 34% of its wireless unit NTT Docomo. It will spend a reported $40 billion (4.25 trillion yen) to take the NTT Docomo private.
The tender offer will be for NTT Docomo Inc 9437.T stock that NTT does not own. The stock will be on offer at 3,900 yen per share. “Today we decided to make Docomo a wholly-owned company,” NTT Chief Executive Jun Sawada told the reporters. “NTT Docomo’s financial base will become stronger giving us the capacity to cut prices.”
Yoshihide Suga has said that Asian country’s mobile rates could be reduced. The move by NTT could be aimed at achieving this by taking NTT Docomo private. But Docomo’s CEO Kazuhiro Yoshizawa said the move is in response to the changing business environment during the coronavirus pandemic. NTT will be funding the acquisition through loans totaling 4.3 trillion yen from Japan’s biggest banks.
After NTT Docomo goes private, it will be no longer be answerable to its shareholders which will mean that it will be obliged to cut prices if the Japanese government asks it to do so.
Mahindra & Mahindra’s new captive solar plant will quadruple its energy output in Maharashtra
Allianz Global Investors to spread its reach to Indonesia
Reliance announces "JioPhone Next" and strategic vision at its AGM
Leica launches its first smartphone with a 1-Inch Camera Sensor
LG Uplus Building Its Second Hyperscale Data Center in South Korea
© 2021 CIO Bulletin. All rights reserved.