Wednesday, 16 July 2014

KDDI, Sumitomo establish joint venture company in Myanmar


Japanese operator KDDI and Sumitomo have established a joint venture company in the Republic of Singapore to jointly conduct telecommunications business in the Republic of the Union of Myanmar. KDDI has signed an agreement with Myanma Posts Telecommunications to jointly provide telecommunications services in the country. To this end, KDDI has set up a joint venture with Sumitomo Corporation in Singapore. This JV then established a subsidiary in Myanmar, through which to conduct the joint operation.


Under the terms of the KDDI – Sumitomo joint venture agreement, a wholly owned KDDI subsidiary located in Singapore will increase its capital via third-party allocation to be undertaken by KDDI and Sumitomo. The capital increase will take place in stages. First, KDDI will add USD 240.5 million, then Sumitomo will invest USD 249.5 million, and then the two companies will undertake a capital increase through third-party allocation. Sumitomo's investment in the JV is subject to approval by local authorities under the antitrust laws of the related countries.


KDDI will leverage its technical capabilities as a mobile telecommunications operator in Japan and overseas, and Sumitomo aims to leverage the expertise gained through trading with Myanmar and as a mobile telecommunications operator overseas. Together, the two companies intend to operate on the ICT market in Myanmar as well as expand their global business.




http://www.information.myanmaronlinecentre.com/kddi-sumitomo-establish-joint-venture-company-in-myanmar/

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