The Japanese government reportedly reaffirmed plans to sell its 34 per cent stake in NTT, as it continues to explore ways to raise cash for its spending on defence.
Reuters reported a member of Japan’s Liberal Democratic Party Akira Amari announced that selling its NTT shares “over the course of decades” would help it secure a stable source of funding to cover the hike in defence spending.
Amari is overseeing a special committee tasked with exploring strategies to finance a hike in military expenditure without raising taxes.
Nikkei Asia also reported last month that fellow member of the party and special committee Koichi Hagiuda is considering a full privatisation of the company, and the news outlet stated the committee has issued a package of defence funding proposals to the government.
The proposals include plans to sell state-owned shares in companies, with a focus on NTT.
NTT’s investor relations disclosure shows the government stake is named under the Ministry of Finance, which owns a controlling 34.3 per cent stake of all outstanding shares as of March.