Japanese telcos KDDI and Sumitomo have offered to buy all remaining shares in Jupiter Telecommunications for Y216bn (US$2.71bn) and create a new merged company.
KDDI currently owns 30.71% and Sumitomo owns 39.98% of the leading Japanese cableco, but the…
Japanese telcos KDDI and Sumitomo have offered to buy all remaining shares in Jupiter Telecommunications for Y216bn (US$2.71bn) and create a new merged company.
KDDI currently owns 30.71% and Sumitomo owns 39.98% of the leading Japanese cableco, but the companies wish to buy the remaining stake and then delist the company, according to the tender offer which was released today.
The new company will be equally owned and jointly managed by KDDI and Sumitomo.
Goldman Sachs and Nagashima Ohno & Tsunematsu will be advising Sumitomo during the tender process, and JP Morgan will be advising KDDI. Nishimura & Asahi is acting as KDDI’s legal adviser.
Jupiter will then buy Japan Cablenet, according to media reports this week. Japan Cablenet is 95.6%-owned by KDDI. However, Jupiter released a statement today saying that “nothing has been resolved or reached an agreement at this stage,” between the two companies.
If Jupiter does buy Japan Cablenet, the new merged company would control half of Japan’s cable services, according to local reports.
Jupiter released its quarterly results today, announcing a 2% revenue increase for the nine months ended 30 September 2012 to Y281,829m (US$3,529.9m).
