KDDI and Sumitomo buy out JCom

16 Apr 2013

Telecoms group KDDI and Sumitomo Corporation have completed a tender offer for the remaining shares of Jupiter Telecommunications (JCom) worth JPY216 billion (USD2.7 billion). KDDI, which owns 31.1% of JCom, and trading company Sumitomo, which owns 40.5%, will buy out the rest of the shares at 33% premium on Friday’s closing price.

The two partners announced plans to merge JCom with KDDI’s Japan Cablenet, providing them with 4.8 million users throughout Japan, annual revenues of JPY459 billion and operating profits of JPY80 billion, as estimated by Michiyo Nakamoto from FT.com. According to the agreement between KDDI and Sumitomo Corporation, the new entity will be equally owned and the two will also take turns appointing the chief executive.

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