DoCoMo share buy-back deal under scrutiny

3 Sep 2003

NTT DoCoMo’s JPY250 billion share buy-back, at a discount to the market price, is raising eyebrows in the investment community as a scheme that favours parent NTT. DoCoMo is repurchasing 919,117 shares at JPY272,000 per share, or a 9.6% discount, in a tender offer that closes on Monday. The amount is part of JPY600 billion DoCoMo has allocated to buy back up to 2.5 million shares, roughly 5% of those outstanding. While DoCoMo claims the buy back takes advantage of Japanese tax law and will benefit all Japanese corporate shareholders, critics say it is a scheme designed to allow NTT to sell a block of shares while discouraging most other shareholders from tendering their shares.