Mergers and Acquistions News
Categories: Telecoms
September 8th 2010, 16:05PM
Mobile phone operator Vodafone has sold its 3.2 per cent stake in China Mobile Limited for £4.3 billion. It is unclear as to the identity of the buyers.
The sale is part of Vodafone's strategy to sell assets off that it considers are not vital to its broader strategies.
The firm expects to use 70 per cent of the net proceeds from the sale to give back to shareholders via a buyback process. The remainder will be ploughed into reducing the firm's debt.
Commenting on the transaction, Vittorio Colao, chief executive of Vodafone, said: "Today's transaction achieves a near doubling of Vodafone’s original investment in China Mobile and combines our stated portfolio strategy with ongoing cooperation with China’s leading telecommunications company."
Vodafone first invested in China Mobile in 2000, and both firms have developed a close and co-operative relationship in varied business areas since.
Despite the sale Vodafone will continue its commercial and technology relationship with China's leading wireless operator, continuing to work on areas like roaming, network roadmap development, multinational customers and green technology.
Vodafone has approximately 347 million customers worldwide.
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