Vodafone sells Belgian holding for €2bn
Mobile phone giant Vodafone today raised £1.4bn (€2bn) from the sale of its 25% stake in Belgium's leading operator, Proximus.
Vodafone said it had secured an “attractive price” from Belgacom, which owns the rest of Proximus and is the country’s largest telecoms company.
Arun Sarin, chie executive of Vodafone, said his company sold up because it did not see itself as the “most appropriate” long-term holder of the minority stake.
Vodafone will maintain a relationship with Proximus customers through a renewed long-term partner network agreement.
The sale is subject to certain regulatory approvals and is expected to close before December 31. Sale proceeds will be used to pay down debt.
As a result of the transaction, Vodafone said it will no longer receive anticipated dividend income from Proximus of around £150m (€222m) this year.
Mr Sarin said today: “We have enjoyed a long and successful relationship with Belgacom, and together have built the leading mobile operator in Belgium.
“We do not, however, see ourselves as the most appropriate long-term holder of this minority stake. In line with our strategy of actively managing our portfolio and maximising returns, we have achieved an attractive price with this sale.”
The sale comes as Vodafone looks to streamline its portfolio and concentrate on core markets.
It has been under pressure, particularly in key European markets, as competition increases and margins are squeezed.
