Japan's NTT Corp. to acquire 100 pct stake in Docomo mobile carrier

Source: Xinhua| 2020-09-29 19:34:12|Editor: huaxia

TOKYO, Sept. 29 (Xinhua) -- Nippon Telegraph and Telephone Corp. (NTT) on Tuesday announced its decision to acquire 100 percent ownership of its mobile carrier business NTT Docomo Inc. through a 4.25 trillion yen (40.22 million U.S. dollars) tender offer.

Through the tender offer -- the largest-ever takeover bid in Japan -- NTT, which holds a 66.21 percent stake in NTT Docomo Inc., said it will acquire the remaining stocks from individual holders, financial institutions and other shareholders.

On completion of the tender offer, NTT Docomo will be delisted from the First Section of the Tokyo Stock Exchange.

The move will allow NTT Corp. to net 100 percent of Docomo's profits, the largest mobile carrier in Japan which boasts around 80 million subscribers.

NTT has its sights set on enhancing its competitiveness in 5G and other next-generation communications networks, with the acquisition coming as Japanese Prime Minister Yoshihide Suga is pushing for lower smartphone service fees amid broader private and public sector digitalization initiatives.

Prior to becoming the prime minister, Suga had been calling to lower mobile tariffs and bring in-line with international standards. He had been critical of Japan's top three carriers, SoftBank, Docomo, and KDDI maintaining a monopoly on smartphone and mobile services.

Of late, however, the major players have come under increased competition from lower-cost carriers, such as Rakuten Mobile Inc., Y!mobile and UQ Mobile, which offer budget mobile services.

NTT's acquisition, however, is expected to offer a more enhanced, cost-effective and better-supported business and management structure to support its next-generation mobile carrier offerings. Enditem