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The sale, taking place over the next five years, will help the company improve its cash flow
Kyocera, a Japanese manufacturer of telecom equipment and semiconductor materials, is planning to sell up to a third its stake in KDDI, Japan’s second largest telco, according to a Bloomberg article published today.
Kyocera currently holds a 15.3% stake in KDDI, which Bloomberg estimates to be worth roughly ¥1.6 trillion ($10.4 billion).Kyocera says it plans to sell a third of this stake over the next five years to boost its finances.
The company said it may also use the KDDI shares as collateral to take out loans, and would consider reducing its KDDI stake further as it moves to exit its non-core operations.
Kyocera’s Q2 financial report highlighted a revenue increase to JPY 1.1 trillion ($7.37 billion) largely driven by demand in components and equipment segments. Operating profit rose by 48.7% year-over-year, reaching JPY 82.5 billion ($552.75 million) due to improved cost efficiency and strategic adjustments.
However, net profit declined 6.3% to JPY 49.7 billion ($332.9 million), impacted by yen depreciation and inflationary pressures.
In related news, a joint proposal from KDDI, NTT, Fujitsu, NEC, and Rakuten Mobile has been chosen by the Japanese government to conduct commissioned research for the “Innovative ICT Fund Projects for Beyond 5G/6G”.
The project aims to develop technologies that will allow multiple providers to work together more effectively, ensuring reliable communication and enabling users to connect to several cloud data centers at once.
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