Oct 20 (Reuters) - Top Japanese cable operator Jupiter Telecommunications Co will buy its closest rival Japan Cablenet Ltd to create a company that will control half of Japan’s cable services, the Nikkei reported.
The new company will be jointly owned by trading house Sumitomo Corp and mobile operator KDDI Corp, the paper said.
Sumitomo owns a 40 percent stake in Jupiter, while KDDI owns 30.7 percent. KDDI also owns 95.6 percent of Japan Cablenet.
Sumitomo and KDDI will buy out the remaining shareholders from Jupiter and delist it, the Nikkei said.
Jupiter’s president Shuichi Mori, who is from Sumitomo, is likely to become president of the merged company and KDDI will supply the chairman, the paper said.
The merged company will be included in KDDI’s consolidated results, the business daily said. (Reporting By Garima Goel in Bangalore; Editing by Sreejiraj Eluvangal)