UK mobile telecoms giant Vodafone has continued with its drive to sell off minority assets, with the sale of its stake in Japanese telecoms group Softbank for £3.1 billion.
Vodafone’s stake in Softbank was left over from the £8.9 billion sale of Vodafone Japan in 2006. The Japanese carrier will now buy back Vodafone’s interests.
The Softbank sale follows the disposal of Vodafone’s 3.2 per cent stake in China Mobile for £4.3 billion; and the setting up of a ‘value-creation’ unit to manage the company’s remaining minority interests—including its 45 per cent stake in US mobile operator Verizon Wireless.
It is thought that Vodafone is now open to discussions about selling both its Verizon stake and its 44 per cent stake in French mobile operator SFR.
Vodafone's 24.4 per cent stake in Poland's Polkomtel, which is said to be worth around €4 billion (£3.4 billion), is likely to be the next asset to go up for sale.
The company has just raised its full-year profit forecast to between £11.8 billion and £12.2 billion, thanks to strong growth in the smartphone market.
Pre-tax profits for the six months to the end of September increased by 43 per cent to £8.24 billion, with sales also up—by 3.9 per cent to £22.6 billion.
Commenting on the results, which were released yesterday, chief executive Vittorio Colao said: “I am pleased to report a further improvement in organic service revenue growth, together with upgraded guidance.
“We have also today announced an updated strategy, which positions Vodafone to realise further value from non-controlled assets, take full advantage of the most valuable telecommunications growth opportunities ahead and which will deliver sustainable revenue growth, stabilising margins and strong free cash flows.”
Headquartered in Newbury, Berkshire, Vodafone is one of the world's largest mobile communications companies by revenue, with approximately 347 million customers as of 30 June 2010. The company has equity interests in over 30 countries across five continents and over 40 partner networks worldwide.
