Vodafone already owns 45% of the company, thus its payment of GBP1.8 billion for a further 21.7% stake, will give it total autonomy over strategic planning of both JT and its mobile phone unit J-Phone, in which Vodafone has a 46% stake. According to the Financial Times, Vodafone said it was targeting an increase in earnings, before, interest, tax, and depreciation and amortization margins at the J-Phone Group to 30% by the end of calendar year 2005.
Vodafone’s large share majority also entitles them the right to remove directors; a board shake up is planned, with American Daryl Green set to become the first foreign chief operating officer to head any Japanese telecoms operator.
Japanese Telecom’s shares were up 8% at ¥378,000 on Thursday, while Vodafone shares were down 2.3% at 138p.
