KDDI buying 10% stake in IIJ

KDDI announced on May 18 that it has signed a capital and business alliance agreement with Internet Initiative Japan (IIJ). After KDDI purchases 10% of IIJ’s outstanding shares (18,707,000 shares) from NTT (Nippon Telegraph and Telephone), they will promote mutual cooperation in business and operations.

KDDI and IIJ will partner and promote mutual cooperation in the following four areas.

• Optimal procurement of KDDI’s communication services by IIJ
• Consider various collaborations in business areas, including subsidiaries of IIJ and KDDI
• IIJ and KDDI’s mutual utilization and joint development of products in the corporate and mobile service fields
• Human resource exchange.

NTT and KDDI are expected to become IIJ’s “largest shareholders”
As mentioned above, KDDI will purchase 10% of IIJ’s outstanding shares from NTT. The transaction date is scheduled for May 25, and the total acquisition price is 51.2 billion yen. KDDI already owns 0.93% (1,680,000 shares) of IIJ’s issued shares, and this acquisition will bring its shareholding ratio to 10.9% (20,387,000 shares).

On the other hand, in order to increase IIJ’s shareholding ratio to 10.9% (20,387,000 shares), in addition to the sale of shares to KDDI, NTT will also apply for IIJ’s share buyback.

If all these transactions are carried out as planned,NTT and KDDI will both become IIJ’s largest shareholders. In addition, IIJ will be excluded from NTT’s “equity-method affiliates,” and NTT will no longer fall under IIJ’s “other affiliates.” Japan Postsen