Softbank’s New Strategy: The Largest LBO in Japan Harvard Case Solution & Analysis

On 17 March 2006, Japanese Internet business Softbank Corp announced that it had reached a close handle British cellphone giant Vodafone Group Plc to purchase its Japanese device, Vodafone K.K. for ¥ 1.75 trillion. To fund the largest business acquisition ever by a Japanese company, Softbank implied to increase involving ¥ 1.1 trillion and ¥ 1.2 trillion via leveraged buyout ("LBO") funds, utilizing Vodafone K.K.'s assets as security. With the acquirement of Vodafone K.K., Softbank planned to establish a multilateral communications company, including news, video and other online material with Vodafone's mobile and fixed line services.

However very first Softbank had to obtain in between ¥ 1.1 trillion and ¥ 1.2 trillion to fund its purchase. The amount was the largest ever to be raised for a buy out by one Japanese company.

Softbank's New Strategy The Largest LBO in Japan case study solution

PUBLICATION DATE: January 05, 2009 PRODUCT #: HKU793-HCB-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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