NTT DOCOMO to Merge with Regional Subsidiaries
NTT DOCOMO INC. and its regional companies in the Hokkaido, Tohoku, Tokai, Hokuriku, Kansai, Chugoku, Shikoku and Kyushu regions of Japan have agreed that the eight wholly owned subsidiaries will merge into NTT DOCOMO, the surviving company, effective from 1 July 2008. The agreement, after being approved by an extraordinary meeting of NTT DOCOMO's board of directors, was signed by the participating parties.
NTT DOCOMO and its eight regional subsidiaries have successfully developed infrastructure and conducted community-based sales in each respective region since 1993. It was decided that the eight regional subsidiaries should merge into NTT DOCOMO, however, to better deal with the changing environment of mobile communications.
The main objectives of the merger are to achieve:
• Enriched and enhanced customer services
• Streamlined group management
• Faster decision making
In accordance with Article 796, Section 3 of Japan's Corporate Law, NTT DOCOMO was not required to convene a general meeting of shareholders to receive their approval of the merger. In addition, in accordance with Article 784, Section 1 of the same law, the regional subsidiaries likewise were not required to convene general meetings of their shareholders. None of the eight regional subsidiaries has issued stock purchase warrants or corporate bonds with stock purchase warrants.