C&W exits Japan with sale of unit to Softbank

IDC looked like a good bet back in 1999 - but then so did lots of ventures

Broadband rising star Softbank is to pay 12.3bn yen (£62.8m) for Cable and Wireless Japanese operation IDC, a business that C&W fought tooth and nail to purchase at the height of the telecoms bubble.

In a statement C&W described IDC as a "sound business" but not a good fit for the future of its business. There has been speculation about a sale of the unprofitable business for some time.

The fixed line businesses of incumbent NTT and KDDI have meant Japan hasn't been a happy hunting ground for the UK's C&W, which has a history of robust data operations in some parts of the world, but Softbank - headed up by charismatic entrepreneur Masayoshi Son - has made inroads into the markets of the more established players.

In July this year Softbank also made an offer for the fixed line business of Japan Telecom from Vodafone, which has rebranded wireless arm J-Phone as Vodafone Japan, and it believes the two major units it has splashed out on this year will be a good fit.

According to reports, Softbank pipped private fund MKS Partners to win IDC.