(Oct 30): Kyocera Corp plans to sell down its stake in Japan’s No 2 telecom operator KDDI Corp over the next five years, the latest company to take part in a gradual unwinding of cross-held shares in Japan.

The Kyoto-based maker of telecom equipment and semiconductor materials holds 15.3% of KDDI — a stake now worth roughly ¥1.6 trillion (US$10.4 billion or RM45.43 billion), according to data compiled by Bloomberg. Kyocera plans to sell about a third of that stake and will use the proceeds to bolster its finances, it said in a statement. 

Kyocera, which established KDDI’s precursor Daini-Denden Kikaku Co in 1984, may also use KDDI shares as collateral to take out loans, and will consider further reducing its KDDI holdings and exiting its non-core operations, it said in its earnings presentation.

Kyocera on Wednesday slashed its annual operating income forecast, citing weakness in its semiconductor devices business. The company, whose businesses range from fine ceramics and kitchen utensils to power tools and gem stones, expanded into many unrelated technological fields under its late founder Kazuo Inamori.

Since founding Kyoto Ceramic Co in 1959, Inamori had given employees oversight and independence over small units of the company’s business that encouraged innovation, but that also invited criticism for lack of focus.

Kyocera’s stock price is down around 15% this year, while KDDI, which seeks to expand in data centres, is up 8%.

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