DCMYY - DoCoMo jumps on report parent NTT will take it private in record $38B tender

NTT DoCoMo ADRs (DCMYY) are hopping more than 20% after Nikkei reports that parent NTT (NTTYY +5.3%) will take the unit private via a Japanese record tender offer of about $38B. That means Japan's top mobile carrier will delist and become a wholly owned subsidiary. Nippon Telegraph & Telephone will buy the 34% of outstanding DoCoMo stock held by others, Nikkei says. Adding the typical 30% premium for a tender offer to the current share price puts the value of the deal over ¥4T. And the move is surely tied to pressure to cut wireless prices coming from new Prime Minister Yoshihide Suga; having NTT as the sole shareholder will mitigate negative impact from price reductions on DoCoMo's earnings.

For further details see:

DoCoMo jumps on report parent NTT will take it private in record $38B tender