Softbank Corp. (9984), Japan's third-largest mobile phone carrier, will reportedly acquire fourth-ranked rival eAccess Ltd. (9427) for as much as JPY 200 billion (USD 2.56 billion). According to a press report, Softbank plans to make eAccess a wholly owned subsidiary through a stock swap and hopes to use eAccess' available bandwidth to cope with sharply rising data traffic. Combined sales at Softbank and eAccess in this FY are expected to total about JPY 3.6 trillion (USD46 billion), which will make Softbank the second-largest mobile carrier in Japan.
At the news, eAccess shares immediately hit the limit price, while Softbank shares plunged by 3%.
The market value of eAccess was merely JPY 52 billion (USD 670 million).
In July 2010 Blackstone lead a JPY 45 billion (USD 577 million) share financing by eMobile, a subsidiary of eAccess to be merged with its parent immediately after the share financing. Blackstone Capital Partners V funds invested JPY 16 billion (USD 200 million) (equivalent to 6% of the subsidiary), Goldman Sachs Group invested JPY 12 billion and eAccess invested JPY 17 billion. Temasek also had a minority stake in eMobile.
No comments:
Post a Comment