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[January 20, 2014]
NEC to sell Internet provider Biglobe to investment fund
(Japan Economic Newswire Via Acquire Media NewsEdge) TOKYO, Jan. 21 -- (Kyodo) _ NEC Corp. will sell its Internet service provider subsidiary NEC Biglobe Ltd. to a Tokyo-based investment fund, industry sources said Tuesday.
NEC's deal to sell the provider to Japan Industrial Partners Inc. will likely involve some tens of billions of yen, with its details to be determined later, according to the sources.
The fund, which was established by parties including Mizuho Securities Co., is planning to resell the business to another Internet provider. The move is likely to trigger reorganization of the industry, the sources said.
Japan Industrial Partners is specialized in revitalizing businesses and has engaged in the restructuring of the scandal-tainted Olympus Corp.
NEC held two rounds of bidding last October and December for potential Biglobe buyers and more than 10 companies including Itochu Corp., which operates Internet portal Excite, took part in it.
The Japanese high-tech firm is withdrawing from the Internet service, which is losing relevance with its mainstay business, and accelerating its restructuring to strengthen its core communication infrastructure and system development business.
The company withdrew from the loss-making smartphone business last July.
(c) 2014 Kyodo News International, Inc.
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