The Japanese government is looking to offload shares in the country’s incumbent, Nippon Telegraph & Telephone Corp (NTT), in the next fiscal year ending 31 March 2012, according to media reports.
The sale, which could amount to Y330bn (US$4bn) for 90…
The Japanese government is looking to offload shares in the country’s incumbent, Nippon Telegraph & Telephone Corp (NTT), in the next fiscal year ending 31 March 2012, according to media reports.
The sale, which could amount to Y330bn (US$4bn) for 90 million shares, may be announced as early as December when the government submits its 2011 budget to parliament, reports wrote.
This move is expected to provide additional financing for public projects and to cut debt. The government would still retain a 33% stake in the company, according to Bloomberg. NTT is rumoured to be willing to buy the shares back.
In a separate report, a government panel has decided against turning NTT’s fibre optic operations into an independent company, arguing it would be too costly and would increase the risk of technical problems, Bloomberg wrote citing a local newspaper.
A few weeks ago, mobile phone operator Softbank reportedly urged the Japanese government to spin off NTT’s unit to create a new public-private company.
Softbank president Masayoshi Son was quoted as saying that this new company would help achieve the government’s objective of providing every Japanese household with broadband access by 2015. It would also allow for more competition.
