NTT to Take Mobile Unit Docomo Private for $38 Billion

Telecom giant already controls 66% of the wireless unit
Buyout follows attacks on mobile profit margins by new PM Suga

WATCH: Docomo’s board said it’s in favor of the takeover by its parent.(Source: Bloomberg)

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By Grace Huang and Gearoid Reidy

September 28, 2020 at 3:33 PM UTC

Updated on

September 29, 2020 at 8:04 AM UTC

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Nippon Telegraph & Telephone Corp. plans to turn its wireless carrier unit NTT Docomo Inc. into a wholly owned subsidiary, a move that may help Prime Minister Yoshihide Suga’s policy push to lower phone tariffs.

NTT will pay 3,900 yen a share to acquire the shares it doesn’t already hold, the companies said in a statement. The buyout is worth around 4.25 trillion yen ($40 billion), a more than 40% premium to Monday’s closing price in Tokyo. Given that parent NTT already controls 66% of the wireless carrier, any proposal is all but guaranteed to pass.