Softbank acquires Vodafone’s Japanese subsidiary for Y1,750 billion

Internet services group Softbank has acquired Vodafone’s Japanese subsidiary for Y1,750 billion ($15.1 billion) in Japan’s biggest leveraged buy-out. SoftBank will buy Vodafone’s entire 97.7 per cent stake in the Japanese unit, putting up Y200 billion in equity and taking on Y1,100-Y 1,200 billion in bank loans to finance the deal. Yahoo Japan, in which SoftBank owns a 42 per cent stake, will invest a further Y120 billion. The acquisition will give SoftBank a readymade network and subscriber base of 15 million, allowing it to accelerate its efforts to become a leading mobile phone operator. The UK-based mobile phone operator accepted SoftBank’s offer in spite of “a serious expression of interest” from Cerberus, a US hedge fund, and Providence Equity Partners, a private equity group, which had lined up financing from four banks for a higher offer. The deal allows Vodafone to return ??6 billion ($10.5 billion) to shareholders.