Vodafone to offload China Mobile holding
The Newbury-based group is selling its 3.2 per cent shareholding in China Mobile for some 4.3 billion, nearly double what it paid roughly ten years ago. The shares will initially be purchased by banks who will in turn sell on to institutional investors.
Vodafone said it would return 70 per cent of the net proceeds to its investors via a share buyback, with the remainder going to reduce debt.
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Hide AdThe UK mobile phone group purchased its initial 2 per cent stake in China Mobile in 2000, and added further to its investment in 2002. However, it never came close to owning the 20 per cent share that former chief executive Christopher Gent spoke of at that time.
Now led by chief executive Vittorio Colao, Vodafone has committed to hiving off its minority assets around the world amid pressure from its shareholders.
The group still has a number of other overseas holdings, including a 45 per cent stake in Verizon Wireless of the US and a 44 per cent share of France's SFR. It also owns parts of telcos in Poland and India.
Market attention is now shifting to SFR. The French operation's co-owner, Vivendi, has confirmed its desire to take outright control. Shares in Vodafone dipped 0.1p to 159.8p.