Japanese telco KDDI Corporation and trading house Sumitomo Corporation have reportedly raised the price of their tender offer to buy Japanese cableco Jupiter Telecommunications to Y123,000 (US$1,335) per share.
Minority shareholders had questioned the…
Japanese telco KDDI Corporation and trading house Sumitomo Corporation have reportedly raised the price of their tender offer to buy Japanese cableco Jupiter Telecommunications to Y123,000 (US$1,335) per share.
Minority shareholders had questioned the initial valuation of Y110,000 (US$1,194) per share, according to Dow Jones.
The companies are said to be planning to launch the tender offer some time between tomorrow and 10 April after receiving antitrust approval from the Chinese authorities this week.
As TelecomFinance previously reported, Sumitomo and KDDI, which currently hold 30.71% and 39.98% stakes in Jupiter respectively, offered to buy all the remaining shares in Jupiter for Y216bn (US$2.71bn) in October.
They planned to launch a tender offer earlier this month, but it was pushed back due to a delay in antitrust approval in China.
As all three entities are Japanese companies, the application to China’s antitrust regulator suggests that Sumitomo is following through on its expansion plans. A Sumitomo executive previously said the buy could be a springboard to expand into overseas markets, particularly in Asia.
Goldman Sachs and Nagashima Ohno & Tsunematsu are advising Sumitomo during the tender process, and JP Morgan is advising KDDI. Nishimura & Asahi is acting as KDDI’s legal adviser.
