LONDON-Vodafone Group plc announced it agreed to sell Japan Telecom Co. to an affiliate of RHJ Industrial Partners, a Ripplewood Holdings L.L.C. fund. Japan Telecom will receive $2.2 billion for the company, $1.9 billion in cash and the remainder in redeemable preferred equity.
The cash will be used to reduce Vodafone’s consolidated net debt, the company said.
The sale was made through Japan Telecom Holdings Co., Vodafone’s 66.7-percent indirectly owned subsidiary. Japan Telecom Holdings plans to retain the equity, which is transferable at least until July 2004.
The transaction is expected to close in the fourth quarter.
Vodafone controls Japanese mobile operator J-Phone Inc.
