Vodafone sells off Softbank stake
Vodafone took a closer step in its disposal project this week by unveiling a huge £3.1bn sale of interests in Softbank while raising its full-year outlook.
The telecom giant’s involvement in Softbank dates back from Softbank’s purchase of the Japanese part of Vodafone back in 2006. The deal left the UK branch with a range of securities, including that of preferred stock, in the Asian counterpart, which will buy help back the interests.
Vodafone also posted pleasing interim results, in turn raising its guidance for operating profits for 2010 to anything between £11.8bn and £12.2bn, which is an improvement from the £11.2bn and £12bn that had previously been predicted.
In the six months leading up to the close of September, revenues grew almost 2%, or 1.8% exactly to £22.6bn, which trounced market hopes of £22.3bn as the telecom force performed well across in all regions during that period.
The results come almost directly after protests that some Vodafone had been able to escape a tax bill of £6bn for its takeover of German telecom firm Mannesmann – allegations denied by both the company itself and HM Revenue and Customs, while being branded an urban myth. As well as this the company is also protesting against a hefty bill it has been hit with in India.
Back in July, Vodafone settled on a £1.25bn figure, which HMRC commented had followed rigorous examinations of the facts involved and involved a highly intensive process of negotiation that was able to successfully test arguments of the parties involved.