By Kosaku Narioka

A unit of Japanese telecom giant Nippon Telegraph & Telephone plans to acquire SBI Sumishin Net Bank in a deal valuing the major Japanese internet-banking services provider at $5.1 billion, part of efforts to strengthen its financial-services business.

NTT Docomo, the wholly owned mobile-carrier unit of NTT, said Thursday that it will launch a tender offer to purchase shares of SBI Sumishin and take it private.

NTT Docomo and rival mobile carriers such as SoftBank Corp. and KDDI have been expanding their financial-services businesses as consumers increasingly use smartphones for everything from grocery shopping to online banking.

The mobile unit of Japanese government-backed NTT said the acquisition will advance its goal of offering a range of financial services, including investment, lending, insurance and settlement.

While the Bank of Japan's gradual rate increases over the past year have allowed banks to charge higher interest rates on commercial loans, new entrants to online banking are fueling competition in the industry.

SBI Sumishin, jointly established by SBI Holdings and Sumitomo Mitsui Trust Bank, was listed in Tokyo in March 2023.

Currently, SBI Holdings and Sumitomo Mitsui each hold a 34% stake in SBI Sumishin, with the rest owned by public shareholders.

NTT Docomo said Thursday that it will offer to purchase SBI Sumishin's shares at 4,900 yen each. That values the company at about Y739 billion, equivalent to $5.1 billion, given that SBI Sumishin had 150.8 million shares outstanding as of the end of March.

NTT Docomo plans to spend Y233.6 billion on the tender offer, which will start Friday and end July 10, the company said.

After the tender offer, SBI Sumishin plans to buy back its shares held by SBI Holdings.

NTT Docomo said it expects to hold about a 66% stake in SBI Sumishin following a series of transactions, with Sumitomo Mitsui Trust Bank retaining a 34% share. The companies will each have a 50% voting stake in the online lender, the NTT unit said.

Separately on Thursday, SBI Holdings said NTT will acquire Y110.75 billion of new shares in the company and become one of its biggest shareholders.

SBI Sumishin shares rose 21% to their limit high of Y3,985 in Tokyo on Thursday after NTT said its mobile-carrier subsidiary was considering acquiring the internet-banking services provider. NTT made the comments following local media reports that NTT Docomo planned to acquire SBI Sumishin.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

May 29, 2025 07:23 ET (11:23 GMT)

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