Belgium's dominant telecom firm Belgacom will take full control of mobile unit Proximus after agreeing to buy Vodafone Group's 25 per cent stake for €2 billion, it said today.
Vodafone will use the proceeds from what it said was an attractively priced deal to reduce debt. It said it expects to record a gain of around £450 million sterling (€665 million) in its results for the year ending March 31st, 2007, from the sale.
The British-based mobile giant has been under pressure to unravel its global structure with minority interests and concentrate on core western European operations.
It announced the sale of its Japanese business in March, the first real retreat from an expansionist strategy that has defined it for years.
Vodafone stock was up 0.7 per cent at 111-1/2 pence at 10.40, while the Dow Jones Europe telecoms index was flat.
Belgacom also said it had agreed to sell its 5.8 per cent stake in France's number two fixed-line operator, Neuf Cegetel, to French media group Vivendi's mobile phone division, SFR, for at least €187 million.
Belgacom said it would buy back up to €200 million of its shares.