Confirming the rumors of late August, KDDI Corp., Japan’s second-largest phone company, will buy the telecommunication unit of Tokyo Electric Power Co. for 127.5 billion yen ($1.1 billion) in stock to expand its Internet-based phone services and gain customers. Japanese telecom companies are seeking ventures with utilities companies to compete against former government monopoly NTT. KDDI will inherit PoweredCom’s more than 4,000 business customers, including Hewlett-Packard Japan, and 64,000 kilometers of fiber optic network infrastructure in the Tokyo area.
KDDI is offering 0.032 share for each PoweredCom Inc. share it does not already own and will acquire PoweredCom on Jan. 1, the companies said today at a news conference. KDDI will issue 186,376 new shares, valuing the transaction at 127.5 billion yen based on its closing stock price today of 684,000 yen.
Via: Bloomberg News