Vodafone Japan sale a £6bn cheer for shareholders

Vodafone fuelled the euphoria in the London market today by promising £6bn (€8.65bn) of cash for shareholders following the sale of its Japanese arm.

The mobile phone group sold its 97.68% stake in Vodafone Japan to internet company SoftBank after failing to make its mark in the competitive region.

The deal, which values the business at £8.9bn (€12.8bn), will lead to the distribution of £6bn to shareholders, although Vodafone did not say if this would be done through a special dividend or a buy back of existing stock.

On the day the FTSE 100 Index rose above 6000, Vodafone shares gained 2% to ease the pressure on chief executive Arun Sarin.

The American has faced criticism after a series of disappointing updates culminated last month with a warning that revenues growth may slow.

In particular, investors have pressed for Mr Sarin to address the poor performance of the Japan business and realise the value of the company’s stake in US-based Verizon Wireless.

Shareholders could now get a record special dividend for a British company, beating the £4.2bn (€6.1bn) offered earlier this year by Hilton Group following the disposal of its hotels to its American sister company.