(Kyodo News International via NewsEdge) KDDI said it plans to hand over some 144,569 KDDI shares to Tokyo Electric Power in January to fund the purchase of a fiber-optic communications business from the electric utility.
The transfer of the shares, estimated to be worth 111.6 billion yen ($947 million) based on Thursday's closing price for KDDI stock on the Tokyo Stock Exchange, will give Tokyo Electric a 7.97% stake in the country's No. 2 telecommunications firm and will make it the third-largest shareholder after Kyocera and Toyota Motor.
Under the deal, which was struck October 12, KDDI will give the utility company 87,007 outstanding shares it holds and 57,562 new shares.
The buyout of the fiber-optics division is expected to make KDDI the fourth largest player in the business after two regional units of market leader Nippon Telegraph and Telephone and Usen.
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