Vodafone Group PLC announced Thursday that it has made an offer to take full control of Japan Telecom Co. Ltd. by purchasing an additional 21.7 percent stake in the company. Vodafone, the world's largest mobile phone operator, already owns a 45 percent stake in Japan Telecom, Japan's third-largest mobile phone operator.
Rumors of the deal surfaced Monday. [See "Report: Vodafone to launch Japan Telecom takeover bid," Sept. 16.]"It's not a done deal -- not yet. At this point it's a tender offer valued at about 1.8 billion pounds (US$2.64 billion)," said Jon Earl, Vodafone investor relations manager.
The tender offer will open on Friday and will end on Oct. 11, Vodafone said.
Specifically, Vodafone will buy a minimum of 10 percent of East Japan Railway Co. Ltd.'s 15.1 percent stake in Japan Telecom and will offer 450,000 Japanese yen (US$3,827.83) per share for the remaining Japan Telecom shares on the market, Vodafone said in an online presentation.
Though Japan Telecom is a full-service carrier with a broad range of operations, including long distance, data and Internet, Vodafone's main interest in the company lies in Japan Telecom's cellular unit, J-Phone Co. Ltd., Vodafone said.
As of Aug. 1, J-Phone had 10.9 million customers, making it the fastest-growing wireless operator in Japan, Vodafone said.
Upon completion of the offer, which is expected to be on Oct. 26, Vodafone anticipates it will own up to 66.7 percent of Japan Telecom while holding an "economic interest" of up to 69.7 percent in J-Phone, the company said.
Along with strengthening Vodafone's presence in "the attractive Japanese wireless market," the company sees the acquisition of J-Phone as a way to give the it "greater exposure to the development of 3G (third generation) and wireless data in Japan," Vodafone said.