A J:Com stake: all the rage

[khurramdar]

A J:Com stake: all the rage

Written by Rose Major
Monday, 15 February 2010 08:56
Jupiter Communications is flavour of the month, with conglomerate Sumitomo Corp announcing it wants to raise its stake in the Japanese cable operator to 40%, from its current 27%. And telco KDDI has said it will still go ahead with its purchase of some of Liberty Global’s stake in J:Com, albeit of a lesser amount to meet regulations.

Sumitomo holds just over 27.4% of J:Com and is launching a ¥122 billion (US$1.4 billion) tender offer which it hopes will take its stake to 40%. The offer of ¥139,500 per share represents a 55% premium on J:Com’s closing price prior to the announcement.


Meanwhile, KDDI will reduce its planned acquisition from 37.8% to 31.1% to comply with stock market regulations that would force an acquirer above 33% to make an offer open to all shareholders. The remainder of the stake KDDI agreed to buy â€" 6.7% of J:Com’s total voting rights â€" will be entrusted to a trust bank.


The aggregate purchase price of KDDI’s entire ownership interests in the Liberty Global companies involved in the deal will be ¥361.7 billion (US$4.01 billion).