November 28, 2011 / 12:36 PM / 6 years ago

KDDI to sell $2.6 billion in CBs, buy back shares from Tepco

TOKYO (Reuters) - Mobile carrier KDDI Corp 9344.T said on Monday that it would sell up to 200 billion yen ($2.6 billion) of convertible bonds and use the money to buy back its own shares from Tokyo Electric (9501.T), the operator of the crippled Fukushima nuclear plant.

A man walks out from Tokyo Electric Power Co. (TEPCO) headquarters in Tokyo June 28, 2011. REUTERS/Toru Hanai

Tokyo Electric (Tepco) is selling its entire stake in KDDI for 186 billion yen, as it sells off assets under a restructuring plan to raise funds to compensate victims of the Fukushima crisis.

Tepco decided to sell the shares to the phone company instead of selling those in the market, prompting KDDI to sell convertible bonds in one of Japan’s biggest such offerings in recent years.

Tepco said it would book a 35 billion yen loss on the KDDI shares.

The utility also said it would sell its entire stake in Kanto Natural Gas 1661.T for about 5.7 billion yen.

    KDDI said the convertible bonds will mature in 2015.

    ($1 = 77.6800 Japanese yen)

    Reporting by Junko Fujita; Editing by Chris Gallagher

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