(Bloomberg) — The board of NTT Docomo Inc. is holding a meeting Tuesday to discuss Nippon Telegraph & Telephone Corp.’s plans to turn its wireless carrier unit into a wholly owned subsidiary, a move that may help Prime Minister Yoshihide Suga’s push to lower phone tariffs.
The buyout could be worth as much as 4 trillion yen ($38 billion), based on a 30% premium to Monday’s closing price in Tokyo, the Nikkei newspaper reported earlier. Given that parent NTT already controls 66% of the wireless carrier, any proposal is all but guaranteed to pass. The
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.
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 the mobile carrier, which is Japan’s largest. Docomo was listed on the Tokyo Stock Exchange’s First Section in 1998 and remains Japan’s sixth biggest company by market value, according to Bloomberg data.
Docomo spokeswoman Saori Yoshimatsu said the company wasn’t the source of the report, and that it had no comment to make at this time. An