Japanese telecoms giant Nippon Telegraph and Telephone plans to launch a tender offer worth up to 3 trillion yen ($20 billion) to buy the remaining shares in NTT Data, the Nikkei newspaper reported on Thursday.
NTT, Japan’s largest telecommunications firm, owns 57.7 per cent of NTT Data, which provides information technology services and had a market capitalisation of $29.5 billion at Wednesday’s close of trade.
Under the tender offer, which could be announced as soon as Thursday, NTT would buy the remaining shares in NTT Data at a premium of 30 per cent to 40 per cent, Nikkei reported.
NTT in a statement said it plans to make a decision at a board meeting on Thursday. NTT Data also said it will hold a board meeting.
Shares in NTT Data were untraded with a glut of buy orders in early Tokyo trade on Thursday.
NTT, a former state monopoly still part government-owned, took mobile carrier NTT Docomo private in a 4 trillion yen deal in 2020.
It has partnered Toyota Motor to develop a mobility platform and is also developing next-generation light-based communications technology.
NTT is also a major operator of data centres.
Management buyouts and corporate acquisitions in Japan have surged in recent years. With the NTT deal, a transaction would bring an end to a prominent parent-child listing – a structure that remains common in Japan.
Toyota Chairman Akio Toyoda has proposed acquiring supplier Toyota Industries in a potential 6 trillion yen deal, media reported last month.
The founding family of Seven & i Holdings attempted a buyout of the 7-Eleven convenience store owner but failed to secure funding. Canada’s Alimentation Couche-Tard has offered $47 billion for the retailer.
($1 = 143.3800 yen)