On Thursday, KDDI Corp, Japan's No. 2 phone operator, informed that a sum of nearly $132 million will be spent by it in order to buy a majority stake in DMX Technologies; for widening its fixed-line network services in China.

Presently, a downward market in Japan is a major concern for KDDI, for both its fixed line and mobile phones. The company which competes with former state-owned monopoly Nippon Telegraph and Telephone Corp seeks new revenue streams abroad.

As per the reports, new shares will be issued by Singapore-listed DMX, which has corporate clients in Hong Kong and mainland China, at S$0.32 a share to KDDI. The price is a little lower than the firm's last traded price of S$0.325.

The company has no intentions of making an offer for the remaining shares in DMX, informed KDDI, whose profits remain weighed-down by losses in its fixed line operations.

A specific software, which helps in delivering video and other multimedia content over the internet and mobile phones, is also owned by DMX.