Japanese telco eAccess announced yesterday that its board has decided to carry out an absorption-type merger with its subsidiary, the Japanese mobile operator eMobile.
In a statement yesterday, eAccess said that under this plan it will survive while…
Japanese telco eAccess announced yesterday that its board has decided to carry out an absorption-type merger with its subsidiary, the Japanese mobile operator eMobile.
In a statement yesterday, eAccess said that under this plan it will survive while EMOBILE will be the dissolving company. The EMOBILE name, which eAccess described as its “most important brand”, will be retained.
The merger is expected to come into effect on 31 March.
eAccess also said that it expects to borrow in order to refinance EMOBILE’s debts. This will happen on or before the effective date of the merger.
According to eAccess’ figures, it made an operating profit of Y19.2bn (US$234m) in the business year ending on 31 March 2010. EMOBILE, on the other hand, made an operating loss of Y6.1bn (US$75m) over the same period.
In January, TelecomFinance reported that a Y165bn (US$2bn) five-year loan for telco eAccess, the parent company of mobile operator EMobile, had been launched into syndication, in a transaction arranged by Credit Agricole, ING, Mizuho and Sumitomo Mitsui Banking Corporation (SMBC).
