According to a report by Bloomsberg, the partnership is expected to provide JTower with the financial backing needed for long-term investments and expansion, ensuring JTower can respond to the evolving needs of the industry by enabling the company to make necessary upfront investments for future growth.
Meanwhile, the report added that the board of directors has also endorsed the offer, recognising the growing need for advanced telecom infrastructure as Japan prepares for further 5G and 6G technologies.
In a statement, the company said: "In the Japanese telecommunications industry, in addition to the deployment of new communication technologies for Beyond 5G and 6G, the burden on telecommunications carriers is expected to continue to increase due to the expansion of the coverage area required not only for disaster response and rural areas on land, but also for the sky, sea, and outer space.
"In addition, as the population continues to decline, a major issue is how to maintain and operate communication infrastructure in a stable manner with limited human resources."
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As a result, JTower's founder and president, Atsushi Tanaka, along with Nippon Telegraph & Telephone Corp (NTT) and its mobile unit, will tender their combined 26% stake in the deal at ¥3,600 ($24.45) per share, Bloomberg confirmed.
After the acquisition, JTower will keep its current management structure and continue its partnerships with major telecom giants like NTT, Docomo and KDDI.
The company added: "As a result, we will be able to respond flexibly to future additional funding needs and make up-front investments from a long-term perspective, thereby appropriately being able to seise growth opportunities in the infrastructure sharing market and further increase the speed of business growth."
Currently, JTower is one of the largest shared infrastructure companies in Japan, owning 7,700 towers in both suburban and rural areas.
Earlier this week, Rakuten announced it planned sell off of part of their mobile network to Macquarie Asset Management, although the term "tower" was not mentioned.
At the time, TowerXchange learnt Rakuten Group and Macquarie Asset Management had finalised a sale and leaseback agreement involving a segment of the telecom giant's mobile assets in Japan.
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