Japan’s Nippon Telegraph and Telephone Corp announced a ground-breaking $40 billion deal that will take its wireless carrier business private.
NTT will launch Japan’s largest-ever tender offer for the 34% of NTT Docomo Inc stock that it does not own, the firm said in a statement. The telecoms firm will offer 3,900 yen per share, a premium of 40.5% to Monday’s closing price.
The buyout comes as new prime minister Yoshihide Suga calls on wireless carriers to reduce prices, with the government hoping resultant savings will stimulate consumer spending elsewhere in the economy.
On Tuesday, Chief Cabinet Secretary Katsunobu Kato reiterated that call, saying there needs to be “visible progress on lowering mobile phone charges”.
“NTT Docomo’s financial base will become stronger giving us the capacity to cut prices,” NTT Chief Executive Jun Sawada told a news conference.