KDDI targets Jupiter takeover with USD2.7bn offer

24 Oct 2012

Japan’s second largest telecoms operator KDDI Corp has, along with trading company Sumitomo Corp, offered up to JPY216 billion (USD2.7 billion) to buy up the remaining shares in the country’s largest cable TV player, Jupiter Telecommunications. It is understood that the pair have offered to buy out Jupiter at JPY111,000 per share, with KDDI investing JPY70.9 billion and Sumitomo Corp a further JPY145 billion, bringing each company’s stake to 50%, according to a joint statement. It is envisioned that the takeover of Jupiter, which is also known as J:COM, will help KDDI and Sumitomo to expand outside their traditional home market, and will help them to expand their offerings through smartphones and other devices. J:COM is currently 40% owned by Sumitomo and 31% by KDDI, and counted 3.7 million subscribers at 30 September 2012, up 11% in two years.

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