• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

Softbank to Buy Vodafone Japan on 1.28 Tril. Yen Loan

Posted on: Tuesday, 4 April 2006, 12:00 CDT

By Kyodo News International, Tokyo

Apr. 4--TOKYO -- Softbank Corp. said Tuesday it plans to borrow 1.28 trillion yen ($10.87 billion) in syndicated loans to finance its purchase of British mobile phone operator Vodafone Group Plc's Japan mobile phone network.

The money will come from seven financial institutions in Japan, Europe and the United States on April 27, with Deutsche Bank and Mizuho Corporate Bank each expected to extend between 200 billion and 300 billion yen, company sources said.

Among others, Sumitomo Mitsui Banking Corp., Citibank and Goldman Sachs (Japan) Ltd. are believed likely to offer 100 billion to 200 billion yen each.

The Softbank group last month announced an acquisition of a 97.7 percent stake in Vodafone K.K. from the British parent for 1.75 trillion yen in the biggest ever leveraged buyout by a Japanese company, and on Tuesday it launched a tender offer through April 24.

In a related move, Softbank Director Ken Miyauchi became executive vice president of Vodafone K.K. on Tuesday and three others from the Softbank group took up senior managing director and executive officer posts.

Vodafone K.K. also announced that all of its seven directors, excluding President William Morrow, are set to step down, and that Softbank President Masayoshi Son and five others will take the positions, effective late this month after an extraordinary meeting of shareholders.

-----

To see more of Kyodo News International, go to http://www.kyodonews.com

Copyright (c) 2006, Kyodo News International, Tokyo

Distributed by Knight Ridder/Tribune Business News.

For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com.

SFTBF, 9984, 9434, VOD,

Source: Kyodo News International, Tokyo

More News in this Category