|NTT DoCoMo to Increase Stake in KG Telecom|
Posted: 18-Jun-2001 [Source: NTT DoCoMo press release]
[DoCoMo's increase in holdings in KG to pave the way for deployment of an i-mode type service as well as 3G services in Taiwan.]
Tokyo -- NTT DoCoMo, Inc. (NTT DoCoMo) announced today that it will increase its stake in KG Telecommunications Co., Ltd. (KG Telecom), a Taiwanese GSM cellular phone operator, by purchasing a maximum of 62,360,884 new shares for existing shareholders and employees at the end of June. KG Telecom will issue a total of 187,332,096 new shares at NT$30 per share, meaning NTT DoCoMo's purchase could be worth up to approximately NT$1.87 billion (about 6.92 billion yen).
NTT DoCoMo will acquire the shares through DCM Capital TWN (UK) Ltd. and Taiwan DoCoMo Ltd., which were established as a result of NTT DoCoMo's acquisition of KG Telecom stock on November 30, 2000. Koos Group, the largest shareholder of KG Telecom, and NTT DoCoMo will be entitled to purchase the unsubscribed shares up to the ratio of their respective holdings in the company.
For NTT DoCoMo, which provides KG Telecom with technological support and is seating two members on its board of directors, the increased investment will pave the way for the early deployment of an i-mode-like and third-generation wireless services in Taiwan, as well as enhance the value of KG Telcom.
NTT DoCoMo and KG Telecom will enter into a licensing agreement for the introduction of i-mode-like services in Taiwan, targeted at around mid-2002. NTT DoCoMo will license technology and provide know-how to introduce the service over a GPRS network for i-mode HTML/WML dual-browser handsets . It will also provide consulting for a business plan feasibility study, server and terminal development, PR and marketing, portal management, content development and customer care. NTT DoCoMo will receive fees from KG Telecom for the license and services.
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