Japanese mobile operator giant NTT DOCOMO is continuing its outwards push from its home market. Today, German mobile content distributor net mobile AG has announced that the operator intends to launch a tender to buy all outstanding shares. Almost immediately after this announcement, the value of net mobile shares shot up by over 30%
This was a voluntary offer from NTT DOCOMO, and it’s being generous with its assessment of net mobile. NTT is offering cash compensation of €6.35 per share – which is almost 35% more than the value of the shares when trading closed last night. It’s also 54% higher than the average value of net mobile shares over the last three months.
The bid hasn’t actually been made yet – the NTTs German subsidiary, DOCOMO Deutschland, will be issuing it at the end of this month. It seems like it’s fairly certain to go ahead at this point. The board and management of net mobile are in support of the deal, and DOCOMO Deutschland has already made agreements to buy shares from existing shareholders.
From the release:
Masatoshi Suzuki, Senior Executive VP of DOCOMO: “Using a unique platform for mobile content distribution, net mobile is steadily expanding its business in Europe. net mobile’s technology and European presence are major plus points for DOCOMO, which is strengthening the foundation of its mobile platform business overseas. DOCOMO believes the close collaborative relationship resulting from this transaction will contribute significantly to growth at both companies.”
Theodor Niehues, CEO of net mobile: “DOCOMO’s extensive know-how and expertise in advanced mobile services will help net mobile broaden its service portfolio. DOCOMO’s worldwide alliance and synergies accomplished with various industries will allow the two companies to achieve the shared goal of providing high value-added mobile communications services globally.”
What we think?
NTT DOCOMO really isn’t messing around with it’s foreign expansion. Like Korean counter-part SK Telekom, the operator has found that saturation in the home market will lead only to stagnation. Its on-going battle with home competitor Softbank has shown its major weakness: as hungry new companies emerge to provide new mobile services that public crave, NTT will slowly watch it’s subscribers get whittled away. With co-ownership of Indian operator TaTa, this bid for mobile content in Germany, and recent moves towards the US it looks like NTT is making sure it has seed spread far and wide to ensure survival in case of a drought back home.