DoCoMo OKs KG Telecom Buy

DoCoMo agrees to Far EasTone Telecom's acquisition of KG Telecom, in which it holds a 21.4% stake, making DoCoMo a 4.9% shareholder in Far EasTone

October 7, 2003

1 Min Read

TOKYO -- NTT DoCoMo, Inc. announced today that it has agreed to a plan by KG Telecommunications Co., Ltd., in which DoCoMo holds a 21.4% stake, to enter into a Purchase Agreement with Far EasTone Telecommunications Co., Ltd., Taiwan's third largest mobile operator. Under the agreement, each KG Telecom share will be converted into 0.46332 Far EasTone shares plus NT$6.72. As a result, KG Telecom will become a 100% subsidiary of Far EasTone. The transaction is expected to be completed around March 2004. Upon completion of the transaction, DoCoMo will become a 4.9% shareholder in Far EasTone, and will receive NT$2,506 million in cash.

In line with this move, DoCoMo also announced that it has concluded a memorandum of understanding with Far EasTone to collaborate on the W-CDMA third-generation (3G) and i-mode® mobile phone businesses in Taiwan. Based on the memorandum, both companies will also work to maximize the synergy effects of the 3G platform, international roaming services, and joint procurement of handsets and other equipment.

In addition, DoCoMo will continue to promote the i-mode business that KG Telecom is currently handling in the Taiwanese market. The newly merged company will take over this role following the acquisition.

Since the start of its equity participation in 2001, DoCoMo has been actively involved in KG Telecom's business through management participation, technical assistance etc. This merger will enable DoCoMo to secure a more solid base in Taiwan, and increase economic value via further development of i-mode services and steady realization of 3G business.

NTT DoCoMo Inc.

Far EasTone Telecommunications Co. Ltd.

KG Telecommunications Co. Ltd.

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