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TOKYO, Oct 24 (Reuters) - KDDI Corp and Sumitomo Corp said on Wednesday they plan to buy shares they do not already own in cable services provider Jupiter Telecommunications Co (JCOM) for 216 billion yen ($2.71 billion), in a step towards merging the two firms' cable businesses.
KDDI and Sumitomo, which together own 70.7 percent of JCOM, will offer 110,000 yen for each remaining share in Japan's biggest cable service provider. That represents a premium of 33 percent to JCOM's closing price of 82,700 yen on Friday, before reports of the merger. JCOM closed at 111,200 yen on Wednesday.
After the tender offer, JCOM will be delisted and made a 50-50 join venture. JCOM will then acquire Japan Cablenet Ltd, now 95.6 percent-owned by KDDI. ($1 = 79.7800 Japanese yen) (Reporting by Tokyo Newsroom; Editing by Michael Watson)