Softbank acquires Cable & Wireless IDC for £72.4M; C&W retains network capability in Japan with two data nodes

October 26, 2004

1 Min Read

LONDON -- Cable and Wireless plc ("Cable & Wireless") announced today (26 October 2004) that it has agreed to sell its Japanese business, Cable & Wireless IDC Inc. ("IDC") to SOFTBANK Corp. ("Softbank") for a consideration of £72.4 million* (including the assumption of debt amounting to £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 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 31 March 2004, IDC reported revenue of £255 million, net profit before exceptional items of £1 million and had net operating assets of £17 million. Cable & Wireless holds 98% of IDC. Net proceeds from the sale of IDC will be applied to the continuing operations of the Cable & Wireless Group.

Cable & Wireless plc

Softbank

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