(Reuters) -Japanese telecoms firm Nippon Telegraph and Telephone ( NPPXF ) announced plans on Thursday to take its subsidiary NTT Data ( NTTDF ) private by purchasing the shares it does not already own for 2.37 trillion yen ($16.4 billion).

NTT said in a statement it would launch a tender offer for NTT Data ( NTTDF ) at 4,000 yen per share, representing a 34% premium from Wednesday's closing price.

NTT Data's ( NTTDF ) shares were untraded on Thursday due to a glut of buy orders, ending at the daily-limit high of 3,492 yen, following a Nikkei newspaper report about the plan.

NTT currently owns 57.7% of NTT Data ( NTTDF ), an information technology services provider with a market capitalisation of $29.5 billion at the close of trade on Wednesday. 

NTT, a former state monopoly still part government-owned, took mobile carrier NTT Docomo private in a 4 trillion yen deal in 2020.

The telecoms company has partnered Toyota Motor ( TM ) to develop a mobility platform and is also developing next-generation light-based communications technology. NTT is also a major operator of data centres.

Management buyouts and corporate acquisitions have surged in Japan in recent years. With the NTT deal, a transaction would conclude a prominent parent-child listing - a structure that remains common in Japan.

Toyota ( TM ) Chairman Akio Toyoda has proposed acquiring supplier Toyota Industries ( TYIDF ) in a potential 6 trillion yen deal, media reported last month.

The founding family of Seven & i Holdings ( SVNDF ) attempted a buyout of the 7-Eleven convenience store owner but failed to secure funding. Canada's Alimentation Couche-Tard ( ANCTF ) has offered $47 billion for the retailer.

($1 = 143.3800 yen)