By ELAINE KURTENBACH, AP Business Writer
MITO, Japan (AP) — Japanese telecoms giant Nippon Telegraph & Telephone, or NTT, announced Tuesday it will spend 4.3 trillion yen ($38 billion) to buy out and take private its mobile unit NTT DoCoMo in one of the largest ever deals of its kind.
NTT and NTT DoCoMo executives released details of the plan Tuesday.
The move is intended to enhance the competitiveness of the NTT group as it consolidates its services, said NTT’s CEO Jun Sawada.
“We want to be a game changer,” Sawada said.
He said that between Sept. 30-Nov. 16 the company would buy DoCoMo’s shares at a price of 3,900 yen. DoCoMo’s shares were last trading at 3,213 yen. NTT held about 66% of DoCoMo’s shares as of March 31.
The acquisition will be financed by bridge loans, not a share offering, the company said.
The restructuring dovetails with newly