NTT Restructures Its Overseas Businesses Under NTT Data Corp.

Japan's telecommunications giant Nippon Telegraph and Telephone Corp. (NTT) said Monday it will reorganize its business structure by consolidating its overseas operations in October under a subsidiary NTT Data Corp. to enhance its competitiveness in the area of digitalization, Mainichi Japan reported.

Photo Insert: NTT Base Station 1

NTT Inc., NTT's wholly-owned unit and a holding company of its overseas operations, will take over NTT Data's businesses abroad. NTT Data will control NTT Inc. by acquiring a 55 percent stake.

Businesses currently under NTT Inc. include South African IT service firm Dimension Data. NTT Data will also transfer its domestic businesses in July 2023 to a new subsidiary to be set up, becoming a holding company to manage NTT Inc. and this new unit thereafter.

As part of the reorganization, NTT said it will acquire up to 60 million, or 100 billion yen ($760 million), of NTT Data's shares from the stock market to strengthen their coordination in managing group operations.

The company did not specify a date for the transaction. NTT currently has 760 million, or 54 percent, of NTT Data's shares.

NTT CEO Jun Sawada suggested in a press conference that the group will further reorganize its operations. NTT spent over 4 trillion yen to make its mobile communication unit NTT Docomo Inc. a wholly-owned subsidiary in December 2020, raising its stake from 66 percent and having the unit delisted.

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