Hutchison Telecommunications Hong Kong Holdings (HTHKH) has arranged to buy out Japan’s NTT Docomo‘s share of its mobile businesses for $60 million.
Under the agreement, HTHKH will acquire Docomo’s 24.1% interest in Hutchison Telephone Company Limited (HTCL) and its 24.1% stake in Hutchison 3G Hong Kong Holdings (H3GHK), making both companies wholly-owned subsidiaries.
In an announcement, HTHKH said acquiring full control of its mobile business will increase the value of HTHKH shares, enhance operational efficiency and save costs by eliminating resources expended on shareholder communications.
The transaction is expected to close on May 31. HTHKH plans to use the proceeds from the disposal of its fixed line business in 2017 to pay for the purchase.
HTHKH and Docomo have agreed to discuss potential ways of extending their mutually beneficial relationship despite no longer being tied through a shareholder relationship.
The companies have agreed to enter a consultation and cooperation agreement upon the closing of the transaction to explore the feasibility of collaboration in the field of mobile telecommunications products and services.