Telepark set to merge with MS Communications
Japanese cellphone sales firm Telepark Corp is set to merge with unlisted rival MS Communications Co Ltd -- its latest move as it seeks to expand, sources with direct knowledge of the deal said on Wednesday.
By Agencies |
TOKYO:Japanese cellphone sales firm Telepark Corp is set to merge with unlisted rivalMS Communications Co Ltd -- its latest move as it seeks to expand, sources withdirect knowledge of the deal said on Wednesday.
Telepark's shares leapton the news and were 12 percent higher at 131,000 yen before being suspended bythe Tokyo Stock Exchange in afternoon trade. Telepark said in a statement thatit was considering a merger with MS Communications but no decision had beenmade.
The two companies are inthe final stage of negotiations and an announcement of the deal is likely thisweek, the sources said. Financial terms were not immediately clear.
Telepark Corp is an affiliateof trading house Mitsui & Co Ltd <8031.T> while MS Communications is ajoint venture owned by rivals Mitsubishi Corp and Sumitomo Corp.
Telepark bought Sanyo ElectricCo Ltd's cellphone sales unit last year for 4.8 billion yen ($46.3 million).Telepark has estimated sales of around 375 billion yen for the business yearthat ended in March, while MS Communications had sales of about 325 billion yenthe previous business year.
Both Telepark and MSCommunications sell some 3.5 million cellphones a year, while their nearestcompetitor Panasonic Communications Co Ltd sells around 2.7 million.
Download
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.
Download
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
The Economic Times News App for Quarterly Results, Latest News in ITR, Business, Share Market, Live Sensex News & More.
ADVERTISEMENT
