Kyocera, a major Japanese manufacturer known for its telecom equipment and semiconductor offerings, is preparing to divest a significant portion of its holdings in KDDI, Japan’s second-largest telecommunications company. As reported by Bloomberg, the company intends to sell about a third of its 15.3% stake in KDDI, valued at approximately ¥1.6 trillion ($10.4 billion), over the next five years. This strategic move aims to bolster Kyocera’s finances and improve cash flow.
The sale could serve as a vital financial boost for Kyocera by generating significant funds. Additionally, the company might use the shares as collateral for loans and is open to divesting more of its non-core operations. This plan aligns with Kyocera’s broader strategy of refining its focus and strengthening its financial stance.
Kyocera’s Q2 financial report highlighted a positive trend in revenue and operating profit. Revenue rose to JPY 1.1 trillion ($7.37 billion), backed by strong demand in its components and equipment segments. Operating profit increased by nearly half compared to the previous year, thanks to enhanced cost efficiency measures. However, the depreciation of the yen and inflationary pressures led to a 6.3% dip in net profit, coming to JPY 49.7 billion ($332.9 million).
In another sphere of activity, a collaboration involving KDDI, NTT, Fujitsu, NEC, and Rakuten Mobile has been selected by the Japanese government. This joint effort will engage in commissioned research as part of the “Innovative ICT Fund Projects for Beyond 5G/6G.” The intention is to enhance technology development that enables multiple service providers to collaborate more efficiently. This initiative will support reliable communication and allow users to connect with multiple cloud data centers simultaneously.
