Broadband provider Yahoo! Japan, a subsidiary of Softbank Corp, has purchased 99.68% of the capital and 33.29% of the voting shares of domestic telecoms provider and fellow Softbank Corp subsidiary eAccess, for JPY324 billion (USD3.17 billion). The deal is conditional on the planned merger between eAccess and Willcom, which is scheduled to take effect on 1 June 2014, going through. The net interest bearing debt of eAccess post-merger is expected to be around JPY230 billion, of which an estimated JPY130 billion is subject to refinancing by Yahoo! Japan.
As previously reported by TeleGeography’s CommsUpdate, in December 2013 eAccess and Willcom signed a Memorandum of Understanding (MoU) to merge their operations, in order to better utilise their business resources. The enlarged company, which will operate under the eAccess banner, will serve more than ten million subscribers, including 4.4 million eAccess customers and 5.7 million subscribers to Willcom’s services.