NTT Offers Doc Bill 30 Billion in Japan’s Largest Public Offering – Markets


Nippon Telegraph & Telephone wants to withdraw its NTT Docomo mobile telecommunications unit from stock exchange, in the largest operation in the history of Japan.

NTT will pay 3,900 yen per share in order to acquire the share of the capital it does not yet have, in an operation of 4.25 billion yen, or 34.4 billion euros. This value represents a 40% premium compared to the closing price of the shares in the last session.

Since NTT already controls 66% of the unit in question, there is already a guarantee that the proposal will be successful. Docomo’s board of directors says it is in favor of the acquisition, which will be financed through debt.

The purchase should start on September 30th and will be completed at the end of the fiscal year, either ending at the end of March next year. When Docomo went public in 1998, it was also the protagonist of the largest IPO that the stock exchange in this country had ever attended.

This operation facilitates the intention of the new prime minister, Yoshihide Suga, to lower telecommunications tariffs, one of the priorities that were announced when he took office, about two weeks ago. Negotiations are already moving forward since last April.


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