Four More U.S. Investment Funds to Invest in Japan Telecom, Ripplewood Says

Oct. 1–TOKYO–U.S. investment fund Ripplewood Holdings LLC said Wednesday four more funds will join it in acquiring Japan Telecom Co., the fixed-line carrier arm of Japan Telecom Holdings Co.

The four are GS Capital Partners 2000 L.P., run by major U.S. brokerage Goldman Sachs, and Newbridge Asia 3 L.P. operated by international investment firm Newbridge Capital, PPM Ventures Ltd. and Telecom Venture Group Ltd., Ripplewood said.

PPM Ventures and Telecom Venture are international investment firms.

In August, Ripplewood announced it had signed an agreement with Japan Telecom Holdings, which operates under British mobile giant Vodafone Group PLC, to acquire Japan Telecom for 261.3 billion yen.

Ripplewood said Wednesday financial details will be discussed further among the investors.

At the same time, it announced a new management lineup for Japan Telecom, Japan’s third-largest telecom carrier.

William Esrey, former CEO of major U.S. telecom Sprint Corp., will become chairman of the board of directors. Ronald LeMay, former Sprint chief operating officer, and Timothy Collins, Ripplewood’s CEO, will be on the new board, Ripplewood said.

The new management team will assume their posts after the acquisition is complete, which is to take place later this year at the earliest, it said.

The deal will be Ripplewood’s largest investment in Japan. The company has already purchased the former Long-Term Credit Bank of Japan, now Shinsei Bank, and the former Nippon Columbia Co., now Columbia Music Entertainment Inc.

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