Sumitomo butts in to usurp KDDI’s J:COM bid

10 Feb 2010

Dow Jones Newswires reports that Japan’s Sumitomo Corp plans to launch a tender offer for shares in domestic CATV operator Jupiter Telecommunications Company (J:COM) in a bid to gain a controlling stake in the company. If realised, Sumitomo’s roughly one-third stake would effectively block KDDI Corp’s attempts to become J:COM’s largest shareholder. However, Sumitomo was quick to publish a press release stating there was ‘no truth’ in the claim.

TeleGeography’s GlobalComms Database notes that on 25 January this year KDDI Corp struck a deal to acquire a 38% stake in local cable TV operator Jupiter Telecommunications (J:COM) from Liberty Global Inc in a USD4 billion cash deal which if ratified, would give KDDI more new subscribers and access to a fibre network. However, at the start of this week CommsUpdate reported that KDDI Corp is now looking to scale back its aspirations for J:COM, by buying a reduced stake in the firm from its owner US-based Liberty Global. It is understood the decision follows a ruling from local regulators that KDDI’s original plan was illegal.

Japan, J:COM (Jupiter Telecom), KDDI (au)