(Reuters) -Japanese telecoms giant Nippon Telegraph and Telephone ( NPPXF ) plans to launch a tender offer worth up to 3 trillion yen ($20 billion) to buy the remaining shares in NTT Data ( NTTDF ), the Nikkei newspaper reported on Thursday.

NTT, Japan's largest telecommunications firm, owns 57.7% of NTT Data ( NTTDF ), which provides information technology services and had a market capitalisation of $29.5 billion at Wednesday's close of trade.

Under the tender offer, which could be announced as soon as Thursday, NTT would buy the remaining shares in NTT Data ( NTTDF ) at a premium of 30% to 40%, Nikkei reported.

NTT in a statement said it plans to make a decision at a board meeting on Thursday. NTT Data ( NTTDF ) also said it will hold a board meeting.

Shares in NTT Data ( NTTDF ) were untraded with a glut of buy orders in early Tokyo trade on Thursday.

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

It 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 in Japan have surged in recent years. With the NTT deal, a transaction would bring an end to 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)