CABLE AND Wireless plc ("Cable & Wireless") announced on Tuesday that it has agreed to sell its Japanese business, Cable & Wireless IDC Inc. ("IDC") to SOFTBANK Corp. ("Softbank") for a consideration of US$72.4 million(including the assumption of debt amounting to US$9.5 million). The transaction is expected to complete in the fourth quarter of 2004/05.
Cable & Wireless will retain network capability in Japan with two international data nodes. This will allow Cable & Wireless to continue to provide its international customers with services to and from Japan. Cable & Wireless holds 98 per cent of IDC, and net proceeds from the sale will be applied to the continuing operations of the group.
Cable & Wireless operations in other Asian markets, including Hong Kong, China, Singapore, Macau and India, will be unaffected by the sale.
Francesco Caio, chief executive of Cable & Wireless, said: "IDC is a sound business, operating in a highly competitive market. However, given our strategy to focus on businesses with strong positions in their primary markets we have concluded that IDC is not a good strategic fit with our business going forward, although it has value to the right owner. Following the sale of IDC, we have ensured that we can continue to provide international customers with high-quality, seamless services to and from Japan."
IDC provides voice, data and IP services to business customers in Japan. For the year ended March 31, 2004, IDC reported revenue of US$255 million, net profit before exceptional items of one million dollars and had net operating assets of US$17 million.
