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Toyota, NTT in capital tie-up
Posted on Wednesday, 25 March 2020 08:15
Nippon Telegraph & Telephone (NTT) and Toyota Motor have taken their existing collaboration in the field of connected car technology a step further by entering into a business and capital alliance over a smart city project. Under terms of the memorandum of understanding, the two will have a cross-shareholding each worth JPY 200.00 billion (USD 1.80 billion) in the other to cement their partnership. Toyota is taking 80.78 million shares - representing a 2.1 per cent stake – in NTT, which in turn is acquiring 29.73 million scrips equating to 0.9 per cent of the Japanese auto manufacturer. Payment for the exchange, through the disposal of treasury stock by way of third-part allotment, is expected on 9th April 2020. They said the cross investment is part of the plan to “establish a long-term and continuous cooperative relationship that enables the commercialisation of smart city businesses”. Together, they will be able to “raise funds to research and develop, plan, design, construct, and implement the "smart city platform" and jointly promote the operation of smart cities”. At the beginning of January 2020, Toyota announced the outline of a project to build a prototype city connecting all kinds of goods and services that support people's lives. Location-wise, the group chose the soon-to-be former site of the Higashi Fuji plant in Susono City, Shizuoka Prefecture, which is scheduled to close at the end of 2020. NTT has been collaborating with Fukuoka, Sapporo, Yokohama, Chiba and other local governments, as well as companies, to solve various city and community issues. The group wants cities to use the most advanced artificial intelligence, Internet of Things, and information and communications technology resource management to quickly detect, analyse, and predict incidents and accidents. NTT and Toyota said they came to the conclusion it is necessary not only for each company to engage in its own projects but also for both to work closely in jointly building and operating the smart city platform. © Zephus Ltd