The mobile division of Nippon Telegraph & Telephone Corp. (NTT Docomo) has announced its intention to acquire a significant stake in the Japanese online bank SBI Sumishin Net Bank Ltd. According to the official statement, Docomo plans to make a tender offer at a price of 4,900 yen per share, which is 49% higher than the bank’s stock closing price as of Wednesday. Upon completion of the deal, Docomo will own 65.81% of the bank’s shares, after which SBI Sumishin will be delisted from the stock exchange.
This is reported by Finway
Details of the Deal and Future Partnership Plans
Sumitomo Mitsui Trust Bank Ltd. will retain 34.19% of SBI Sumishin shares, as stated in the companies’ official announcement. The transfer of the controlling stake is part of a broader investment alliance between the state telecommunications corporation and SBI Holdings. As part of this collaboration, NTT will invest 110 billion yen in a venture fund owned by SBI Holdings, receiving an 8.25% stake in return.
Innovative Financial Services and Market Competition
According to the management of both companies, NTT and SBI Holdings will develop joint financial services – ranging from asset management to insurance products. At the same time, NTT Data Group will provide technological support for SBI Holdings’ financial projects. This approach will contribute to the expansion of the financial services ecosystem for clients of both companies.
“Docomo, which holds nearly half of Japan’s mobile phone market, is not rushing to expand its financial assets and services compared to its competitors. This is happening as more agile competitors gradually take away its dominant share.”
Amid rising competition in Japan’s mobile services market, NTT Docomo aims to strengthen its position by investing in the financial sector. This strategy is expected to help the company maintain its market share and broaden its range of services for users.