British mobile group Vodafone has announced it will sell its interests in Japanese telecoms firm Softbank back to the company for £3.1bn.
“Vodafone agreed to sell to SoftBank Corp of Japan its interests in loan notes issued
by SoftBank Mobile Corp and…
British mobile group Vodafone has announced it will sell its interests in Japanese telecoms firm Softbank back to the company for £3.1bn.
“Vodafone agreed to sell to SoftBank Corp of Japan its interests in loan notes issued
by SoftBank Mobile Corp and preferred stock and share acquisition rights issued by BB Mobile Corp (both subsidiaries of SoftBank Corp), which were originally received as part of the proceeds from the sale of Vodafone Japan in 2006, for a total consideration of Y412.5bn (£3.1bn),” the company wrote in its interim results.
The money will be received in two tranches in December 2010 (£1.6bn) and April 2012 (£1.5bn). The first instalment will be used to cut debt. But this sale is also part of larger strategy aimed at focusing on the European, African and Indian markets.
“The execution of our updated strategy, announced today, will create a more valuable business, establish Vodafone as the leading operator in mobile data in Europe, India and Africa and further develop our market position in total communications. […] We will actively manage our investment portfolio and seek out value enhancing opportunities – wherever possible – as we have done with the sale of the Group’s investment in China Mobile and in SoftBank which was announced today,” the statement read.
In early September, Vodafone sold its 3.2% stake in China Mobile for £4.3bn. Following the sale, Vodafone said it would begin a share buyback scheme for 70% of the proceeds.
Over the last few months, Vodafone has been looking to offload several minority investments in foreign companies in order to return money and therefore calm investors. Vodafone’s other minority stakes include Verizon Wireless (45%), SFR (44%) and Polkomtel (24.4%).
