In order to raise the company’s international profile and augment its funding options DoCoMo had been planning to list in New York and London next month. However, some executives have become concerned about the need to revalue DoCoMo’s investments in overseas companies given the sharp fall in telecoms shares.
DoCoMo took a 16% stake in AT&T Wireless for about ¥1,000bn ($8.2bn), a 15% stake in KPN Mobile for about ¥400bn, and a 20% stake in Hutchison 3G, which owns a third-generation license in the UK, for ¥200bn last year. The company also invested in KG Telecom in Taiwan and owns about a 20% stake in Hutchison Telephone in Hong Kong.
Investors and analysts have expressed concerns about the fall in DoCoMo’s overseas investments. DoCoMo itself has been studying the valuation of its investments and whether or not it needs to revalue them. However, there are no clear rules about revaluing shares in unlisted companies, such as KPN Mobile and Hutchison 3G.
Consequently, DoCoMo executives are divided over whether a revaluation is necessary. While some executives are concerned that listing without revaluing its investments would be legally problematic, others believe a revaluation is not yet necessary.
A decision on whether to go ahead with the listings is not expected to be reached untillater this month.
