Nippon Telegraph & Telephone Corp (NTT Corp) President and CEO Jun Sawada says that his group’s JPY4.25 trillion (USD40 billion) buyout of mobile arm NTT DOCOMO will free it up to sell off some assets, generate cash to deliver dividends and to repay debt undertaken in financing the deal. In an interview with Bloomberg, Mr Sawada noted that reincorporating DOCOMO will also allow it to invest more aggressively overseas. ‘Greater cost savings as well as sales and securitisation of real estate, data centres and other assets will deliver enough cash to revamp the business while rewarding shareholders and boosting its overseas portfolio, he is quoted as saying.
Last month, NTT Corp revealed plans to take full control of its wireless arm by buying out the roughly 34% stake in the company it does not already own, and then take the company private. The nation’s former state-owned monopoly listed the cellular business 28 years ago but is now looking to effectively reverse that, in what analysts say could be Japan’s biggest ever tender offer.