Carlyle seeks investor for Willcom: sources
U.S. private equity firm Carlyle Group CYL.UL is seeking a new investor for Willcom Inc as the Japanese mobile phone operator needs $1.8 billion to develop new technology services, four people familiar with the matter said.
Carlyle, which owns 60 percent of unlisted Willcom, has hired Merrill Lynch & Co (MER.N: Quote, Profile, Research, Stock Buzz), to find an investor to purchase new shares in Willcom, they said, asking not to be identified because the information is not public.
Carlyle is also willing to sell part of its stake, the financial sources said.
Electronic parts maker Kyocera (6971.T: Quote, Profile, Research, Stock Buzz) owns 30 percent of Willcom and KDDI Corp (9433.T: Quote, Profile, Research, Stock Buzz) holds 10 percent.
Willcom said in November it would need 200 billion yen ($1.8 billion) by the end of 2015 to develop new PHS technology to better compete against NTT DoCoMo Inc (9437.T: Quote, Profile, Research, Stock Buzz), KDDI and Softbank Corp (9984.T: Quote, Profile, Research, Stock Buzz).
In December, Willcom won one of two licences from the government to provide next-generation wireless Internet access low fees payday loan. The technology enables quick Internet access on laptops and other mobile devices while users are on the move. KDDI obtained the other license.
Willcom has said it plans to start offering the new service using PHS or personal handy-phone system technology in October 2009, after launching a preliminary service in April of that year.
The company is Japan’s dominant PHS mobile phone operator. PHS technology is cheaper to operate but has a shorter range and requires more base stations than other types of mobile phone technology.