TOKYO-NTT DoCoMo said it will increase its stake in Taiwan’s KG Telecommunications by purchasing a maximum of more than 62.36 million new shares from existing shareholders and employees at the end of June. KG Telecom will issue a total of 187.3 million new shares at 88 cents per share, meaning NTT DoCoMo’s purchase could be worth up to about $54.6 million.
The Japanese carrier currently has a 20-percent stake in KG Telecom. The value of its new stake will be determined after the number of shares accepted by other shareholders is known.
The increased investment will pave the way for the early deployment of an i-mode-like wireless service in Taiwan, NTT DoCoMo said. The companies are targeting the introduction of i-mode-like services in Taiwan for around mid-2002.
The Japanese company will license technology and provide know-how to introduce the service over GPRS networks for i-mode HTML/WML dual-browser handsets. In addition, NTT DoCoMo will provide consulting for a business plan feasibility study, server and terminal development, public relations and marketing, portal management, content development and customer care.
NTT DoCoMo will acquire the shares through DCM Capital TWN and Taiwan DoCoMo, which were established as a result of NTT DoCoMo’s acquisition of KG Telecom stock last November. Koos Group and NTT DoCoMo will be entitled to purchase the unsubscribed shares up to the ratio of their respective holdings in the company.
