For Immediate Release
August 5, 1997
NTT Becomes Strategic Partner of Sri Lanka Telecom
Nippon Telegraph and Telephone Corporation (NTT) signed a contract today in Colombo, Sri Lanka, with the Government of Sri Lanka (GOSL) and Sri Lanka Telecom Ltd. (SLT) to acquire 35% of SLT shares, and become a strategic partner of SLT. NTT is entitled to appoint the CEO. Mr. Jun-ichiro Miyazu, president of NTT, attended the signing ceremony.1. Background
Today's signing was a result of NTT's success in a two stage bidding process organized by GOSL in February and July, 1997.
2. Sri Lanka Telecom Limited
SLT, which was privatized in September 1996, is the sole provider of basic domestic and international telecommunications services. SLT also provides mobile communications services through an affiliate company. In fiscal year 1996 SLT's revenue was US$178 million and its operating profit was US$51 million.
3. The Contract
1) NTT's investment
- US$ 225 million for 35% of SLT shares
2) NTT's managerial participation
- NTT may appoint and send 4 board members, including the CEO, and other NTT employees. (The total number of board members is 10 of which GOSL appoints 6.)
Important managerial decisions require that GOSL and NTT reach a consensus.
Mr. Hideaki Kamitsuma, currently president of NTT International Corporation, will be appointed the CEO of Sri Lanka Telecom and begin his duties tomorrow. He will be stationed in Sri Lanka on a full-time basis. NTT is committed to contributing to the further development of SLT.
