AFX News Limited
Japan's NEC sets spin-off of Biglobe Internet unit for July 1
03.28.2006, 04:49 AM

TOKYO (AFX) - NEC Corp said in a statement it has decided to spin off its Biglobe Internet service provider business and will also seek a capital injection for the ISP in order to boost the business.

The statement said NEC will spin off Biglobe on July 1.

The new firm, to be named NEC Biglobe, will initially have paid-in capital of 4.0 mln yen but it will privately place shares to NEC Corp, Sumitomo Corp, Daiwa Securities Group Inc, Sumitomo Mitsui Banking Corp, Dentsu Inc and Hakuhodo Inc boosting the capital base to 10.35 bln yen by the end of July this year.

When the recapitalisation is completed, NEC Corp will hold a 78 pct stake in Biglobe, with Sumitomo Corp, holding 7 pct, Sumitomo Mitsui Banking and Daiwa Securities 5 pct each and Dentsu and Hakuhodo 2.5 pct stakes each.

Biglobe now has 4.4 mln subscribers and is the fourth-biggest ISP in Japan after Nifty Corp, Softbank BB Corp and NTT Communications Corp.


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