Goldman Sachs to raise eMobile stake to 35.7%

15 May 2007

Investment group Goldman Sachs is ready to pay JPY12 billion (USD100 million) to raise its stake in eMobile, the wireless arm of Japan’s eAccess group, from 29.8% to 35.7%, says Reuters. The move, which will see eAccess’ holding drop from 43.5% to 37.6%, will enable the parent company to strengthen its balance sheet and increase its dividend, while Goldman Sachs will yield a bigger return when the unit is floated – expected in 2011-12. The share sale would transform eMobile from a consolidated subsidiary into an affiliate, reducing the losses eAccess is required to book on its earnings sheet. The parent was one of three companies awarded mobile licences in 2005. It has since raised USD3 billion through loans and via the sale of shares to the likes of Goldman Sachs and Temasek (Singapore) to fund the rollout of its nationwide network.

Japan