Japan's telecommunications giant Nippon Telegraph and Telephone Corp. said Monday it will reorganize its business structure by consolidating its overseas operations in October under a subsidiary NTT Data Corp. to enhance its competitiveness in the area of digitalization.

NTT Inc., NTT's wholly owned unit and a holding company of its overseas operations, will take over NTT Data's businesses abroad. NTT Data will control NTT Inc. by acquiring a 55 percent stake.

Businesses currently under NTT Inc. include South African IT service firm Dimension Data.

NTT Data will also transfer its domestic businesses in July 2023 to a new subsidiary to be set up, becoming a holding company to manage NTT Inc. and this new unit thereafter.

As part of the reorganization, NTT said it will acquire up to 60 million, or 100 billion yen ($760 million), of NTT Data's shares from the stock market to strengthen their coordination in managing group operations. The company did not specify a date for the transaction.

NTT currently has 760 million, or 54 percent, of NTT Data's shares.

NTT CEO Jun Sawada suggested in a press conference that the group will further reorganize its operations. NTT spent over 4 trillion yen to make its mobile communication unit NTT Docomo Inc. a wholly owned subsidiary in December 2020, raising its stake from 66 percent and having the unit delisted.

==Kyodo

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