Japanese operator NTT outlined plans to sell off assets to fund share buybacks, reduce debt and invest aggressively in new businesses overseas, after taking its mobile subsidiary private, Bloomberg reported.
CEO Jun Sawada told the news agency the buyout would simplify selling group assets as well as generate substantial cost savings, which it can use to buy back shares, pay dividends and add to its international portfolio.
He added it wants to make its assets more liquid and use those to fund new ventures, noting: “We want Docomo to invest abroad again.”
Last week, the operator, which owns 66.2 per cent of NTT Docomo, made a tender offer to acquire the remaining shares and delist the company from the Tokyo exchange, making Docomo a wholly owned subsidiary.
Sawada said it plans for Docomo to work closer with NTT Communications, its managed services and cloud unit, with any investments focused on the enterprise sector, but it also is considering offerings targeted at consumers, such as mobile payments, Bloomberg stated.
The buyout is expected to be completed in its fiscal year ending 31 March 2021.Subscribe to our daily newsletter Back