Vodafone Japan Sold
20 March 2006 by axxxr Vodafone Group announces an agreement to sell its 97.68% interest in Vodafone Japan to SoftBank.The sale values Vodafone Japan at an Enterprise Value of approximately ¥1.8 trillion (£8.9 billion) of which £6.8 billion will be received in cash on closing. Subsequently,Vodafone will distribute £6 billion of cash to shareholders.
Arun Sarin, Chief Executive of Vodafone,commented: "I am pleased to announce this transaction which represents a good outcome for Vodafone.It is at an attractive price, will result in a £6 billion distribution of capital to shareholders and is enhancing to adjusted earnings per share. The Board has arrived at the decision to withdraw our capital from the Japanese market based on several key criteria. It has become increasingly clear that the greatest operational benefits come from strong local and regional scale. We seek to deploy capital only where we can generate superior returns for ourshareholders in markets that offer a strong local position. In the case of Japan, we have been making progress on the turnaround in recent months.However given the relative competitive position of the business, the reduced prospects for superior long term returns and a good offer from SoftBank, the Board took the decision to sell. I would like to pay tribute to the management and employees of Vodafone Japan.They have made considerable progress in turning the business around.I am pleased that with the on-going relationship with SoftBank, one of the leading telecommunications and media companies in Japan,we will continue to benefit from insights in the Japanese market". www.vodafone.com
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